1 00:00:00,480 --> 00:00:02,760 Speaker 1: Hello, and welcome back to another episode of The Mark 2 00:00:02,800 --> 00:00:06,240 Speaker 1: Moss Show, where we're talking about the world changing as 3 00:00:06,280 --> 00:00:09,560 Speaker 1: a world of decentralization and deglobalization is upon us, and 4 00:00:09,600 --> 00:00:11,440 Speaker 1: we got a lot to cover. I've tried to bring 5 00:00:11,480 --> 00:00:13,440 Speaker 1: to you some education in some of the latest breaking 6 00:00:13,440 --> 00:00:16,079 Speaker 1: news headlines so you can see the signs that play 7 00:00:16,120 --> 00:00:17,880 Speaker 1: by play of how this world is breaking down. And 8 00:00:17,920 --> 00:00:20,639 Speaker 1: so we're gonna talk about what is going on in 9 00:00:20,640 --> 00:00:23,320 Speaker 1: the economy. Everyone's screaming for a recession while the markets 10 00:00:23,320 --> 00:00:25,000 Speaker 1: are high. We're going to talk about some of these 11 00:00:25,040 --> 00:00:27,040 Speaker 1: signs that we have there. We're going to talk about 12 00:00:27,080 --> 00:00:31,360 Speaker 1: this new bill that just got past in bitcoin that 13 00:00:31,440 --> 00:00:34,920 Speaker 1: has massive implications. This is just breaking news. We're gonna 14 00:00:34,920 --> 00:00:36,800 Speaker 1: talk about what the heck is going on with commodities, 15 00:00:37,040 --> 00:00:41,120 Speaker 1: specifically with oil, what is going on with China. Man, 16 00:00:41,159 --> 00:00:42,559 Speaker 1: We have a lot to cover. We're going to talk 17 00:00:42,600 --> 00:00:47,600 Speaker 1: about what's going on in the US with some big, big, 18 00:00:47,640 --> 00:00:49,640 Speaker 1: big domestic news. Anyway, I got a lot to cover. 19 00:00:49,760 --> 00:00:51,240 Speaker 1: You don't want to miss this. If you do miss 20 00:00:51,280 --> 00:00:53,239 Speaker 1: any of it, don't worry. We got your cover. You 21 00:00:53,240 --> 00:00:55,040 Speaker 1: can check it out on the podcast. Just search the 22 00:00:55,120 --> 00:00:58,160 Speaker 1: Mark Moss Show in your favorite podcast player, or go 23 00:00:58,200 --> 00:01:01,760 Speaker 1: watch me on YouTube search Market Disruptors and you can 24 00:01:01,760 --> 00:01:03,960 Speaker 1: watch me and listen to me over there. But just 25 00:01:04,040 --> 00:01:06,000 Speaker 1: jumping right in, Like I said, we had some big 26 00:01:06,040 --> 00:01:09,840 Speaker 1: news in the bitcoin space this week, which is the technology, 27 00:01:09,840 --> 00:01:12,880 Speaker 1: the decentralized technology that's really starting to drive massive change 28 00:01:12,920 --> 00:01:15,280 Speaker 1: around the world. And one of the big changes that 29 00:01:15,360 --> 00:01:23,240 Speaker 1: just happened is something called FASB Financial Accounting Standard Board. 30 00:01:24,080 --> 00:01:26,240 Speaker 1: All right, it's a big deal. Bloomberg reported on this 31 00:01:26,640 --> 00:01:30,840 Speaker 1: Bloomberg Tax specifically about these financial accounting standards. And so 32 00:01:30,920 --> 00:01:34,679 Speaker 1: basically as a company, as a corporation, you have to 33 00:01:34,840 --> 00:01:39,080 Speaker 1: follow what's called GAP General Accepted Accounting Principles or whatever, 34 00:01:39,400 --> 00:01:41,920 Speaker 1: and so you have to file this, you have to 35 00:01:42,000 --> 00:01:43,440 Speaker 1: keep your books in a certain order, you have to 36 00:01:43,440 --> 00:01:45,400 Speaker 1: file your reports in a certain order, especially if your 37 00:01:45,440 --> 00:01:48,680 Speaker 1: publicly traded companies. So there's all types of regulations, especially 38 00:01:48,760 --> 00:01:50,680 Speaker 1: especially in the banking sector, but all types of regulations 39 00:01:50,680 --> 00:01:53,160 Speaker 1: that talk about how you can hold assets, how you 40 00:01:53,160 --> 00:01:55,600 Speaker 1: can classify them, how you can value them, how you 41 00:01:55,640 --> 00:01:58,480 Speaker 1: report them, and all these different types of things and 42 00:01:59,000 --> 00:02:02,560 Speaker 1: the way that you're a able to handle and manage 43 00:02:02,600 --> 00:02:08,320 Speaker 1: assets very greatly, and they change the incentives for you 44 00:02:08,360 --> 00:02:11,200 Speaker 1: to want to have those types of assets. So, for example, 45 00:02:12,400 --> 00:02:14,280 Speaker 1: if I can hold a certain type of asset that 46 00:02:14,320 --> 00:02:16,760 Speaker 1: gives me a lot of leverage, I might want to 47 00:02:16,840 --> 00:02:19,600 Speaker 1: hold that for reasons besides just holding it, but also 48 00:02:19,639 --> 00:02:22,040 Speaker 1: I might want to hold an asset but that the 49 00:02:22,080 --> 00:02:23,720 Speaker 1: incentives work against me and I don't want to. So 50 00:02:23,960 --> 00:02:27,040 Speaker 1: let me break this down for you. So for bitcoin 51 00:02:27,080 --> 00:02:32,040 Speaker 1: and other cryptocurrencies, for example, the new rules under this 52 00:02:32,560 --> 00:02:36,360 Speaker 1: Financial Accounting Standards Board, the new rules would allow a 53 00:02:36,400 --> 00:02:40,600 Speaker 1: better reflection of the actual market value of the digital assets, 54 00:02:40,919 --> 00:02:43,800 Speaker 1: as well as bring greater transparency to the financial reporting 55 00:02:43,840 --> 00:02:48,160 Speaker 1: of companies that hold them. Now, these changes aren't in 56 00:02:48,160 --> 00:02:51,079 Speaker 1: effect yet, it's just getting published. They expect to be 57 00:02:51,080 --> 00:02:52,760 Speaker 1: published by the end of this year and then go 58 00:02:52,800 --> 00:02:57,000 Speaker 1: into effect as soon as twenty twenty five, but it 59 00:02:57,040 --> 00:02:59,560 Speaker 1: looks like companies will able to start applying them earlier 60 00:02:59,600 --> 00:03:04,320 Speaker 1: than that. And so basically the old treatment before this 61 00:03:04,560 --> 00:03:08,760 Speaker 1: is that like bitcoin or cryptocurrencies, is an intangible asset, 62 00:03:09,040 --> 00:03:11,800 Speaker 1: which means that if the price went lower than what 63 00:03:11,840 --> 00:03:14,079 Speaker 1: the companies bought it for, then they'd have to take 64 00:03:14,120 --> 00:03:17,600 Speaker 1: an impairment charge on their books, even if they didn't 65 00:03:17,639 --> 00:03:21,359 Speaker 1: sell and so we talked about this a couple weeks 66 00:03:21,400 --> 00:03:25,840 Speaker 1: ago with SpaceX had to mark down the bitcoin that 67 00:03:25,880 --> 00:03:28,480 Speaker 1: they had on their books. So in the old treatment, 68 00:03:28,600 --> 00:03:30,400 Speaker 1: if the prices went down, they had to take this 69 00:03:30,480 --> 00:03:33,960 Speaker 1: impairment charge. They had the negative, but they didn't get 70 00:03:34,040 --> 00:03:37,040 Speaker 1: the positive. If the price went up, they couldn't receive 71 00:03:37,080 --> 00:03:40,320 Speaker 1: any benefit on their books unless they sold it all right, 72 00:03:40,600 --> 00:03:43,000 Speaker 1: So this means so if you're a business, if you're 73 00:03:43,000 --> 00:03:46,920 Speaker 1: a corporation, if you're reporting these numbers, then you want 74 00:03:46,960 --> 00:03:49,800 Speaker 1: to know what your balance sheet has, So that means 75 00:03:49,880 --> 00:03:52,240 Speaker 1: what are the assets on the books. So typically, if 76 00:03:52,280 --> 00:03:54,600 Speaker 1: I'm looking at a publicly traded company, I want to look 77 00:03:54,640 --> 00:03:58,520 Speaker 1: at like what is this company's liquidation value? If I 78 00:03:58,560 --> 00:04:01,840 Speaker 1: bought this company liquidated, how much inventory do they have? 79 00:04:01,960 --> 00:04:04,920 Speaker 1: How much money in the bank do they have? How 80 00:04:05,000 --> 00:04:07,320 Speaker 1: much is the total bye of all their assets? So 81 00:04:07,360 --> 00:04:08,920 Speaker 1: let's say that the total valve of all their assets 82 00:04:08,920 --> 00:04:11,200 Speaker 1: is one hundred million, but I can buy them. I 83 00:04:11,240 --> 00:04:13,280 Speaker 1: could buy the stock for a fifty million. That's a 84 00:04:13,280 --> 00:04:15,880 Speaker 1: pretty good deal. The problem is is that under these 85 00:04:15,920 --> 00:04:20,000 Speaker 1: old accounting rules, you can't use bitcoin or crypto assets 86 00:04:20,200 --> 00:04:23,400 Speaker 1: fair market value. So you bought bitcoin at a dollar 87 00:04:23,440 --> 00:04:25,800 Speaker 1: and now it's worth thirty thousand. You went, you know, 88 00:04:25,800 --> 00:04:27,560 Speaker 1: you had one hundred thousand dollars with a bitcoin, now 89 00:04:27,560 --> 00:04:29,040 Speaker 1: you got one hundred million dollars with a bitcoin. You 90 00:04:29,080 --> 00:04:31,400 Speaker 1: can't put the one hundred million on there. And so 91 00:04:31,480 --> 00:04:34,159 Speaker 1: because of that, a lot of these big corporations don't 92 00:04:34,200 --> 00:04:37,840 Speaker 1: want to add it because they only get the negative 93 00:04:37,839 --> 00:04:41,000 Speaker 1: this impairment charge. They have to market down showing that 94 00:04:41,000 --> 00:04:43,000 Speaker 1: they're in a loss, which is what happened to SpaceX, 95 00:04:43,800 --> 00:04:46,440 Speaker 1: but they can't show the upside. So, like I said, 96 00:04:46,440 --> 00:04:50,679 Speaker 1: when bitcoin price plunk surges goes up, the companies aren't 97 00:04:50,720 --> 00:04:52,760 Speaker 1: able to reflect that. So this is a really, really 98 00:04:52,760 --> 00:04:55,680 Speaker 1: big deal. This could make companies. I think it will 99 00:04:55,720 --> 00:04:58,480 Speaker 1: make companies way more likely to add bitcoin to their 100 00:04:58,520 --> 00:05:02,840 Speaker 1: balance sheet and long term holders because now they can 101 00:05:02,920 --> 00:05:05,240 Speaker 1: report the appreciation with they're having to sell anything, so 102 00:05:05,279 --> 00:05:08,880 Speaker 1: they can take little bets today with these bitcoin or 103 00:05:08,920 --> 00:05:12,800 Speaker 1: crypto assets, expecting a big return, and then in the 104 00:05:12,800 --> 00:05:15,680 Speaker 1: future they could report earnings based off of the new 105 00:05:15,800 --> 00:05:18,960 Speaker 1: balance the new asset prices, which could make them look 106 00:05:19,000 --> 00:05:21,960 Speaker 1: like geniuses, which could bolster their balance sheet, which could 107 00:05:22,880 --> 00:05:26,640 Speaker 1: ultimately republic tread company affect their stock price now Michael Saylor, 108 00:05:27,480 --> 00:05:31,320 Speaker 1: the CEO of When now I step down of micro Strategy, 109 00:05:31,440 --> 00:05:33,279 Speaker 1: I think he's still the chairman of the micro Strategy. 110 00:05:33,839 --> 00:05:35,760 Speaker 1: He's one of the biggest bitcoin holders in the world, 111 00:05:35,960 --> 00:05:39,640 Speaker 1: one of the most publicly outspoken Bitcoin advocates in the world, 112 00:05:39,880 --> 00:05:42,760 Speaker 1: and he believes this is massive news. He's been trying 113 00:05:42,760 --> 00:05:44,080 Speaker 1: to get this to go through for a long time, 114 00:05:44,160 --> 00:05:46,279 Speaker 1: so it's a big deal. Some other things I saw 115 00:05:46,320 --> 00:05:48,239 Speaker 1: in the bitcoin space this week. In the crypto space 116 00:05:48,240 --> 00:05:50,480 Speaker 1: this week was really really interesting, and I don't want 117 00:05:50,480 --> 00:05:53,200 Speaker 1: to say crypto space, it was specifically in the bitcoin space, 118 00:05:53,960 --> 00:05:56,520 Speaker 1: and it's because of the bitcoin mining. So most of 119 00:05:56,560 --> 00:05:59,000 Speaker 1: the other cryptocurrencies have all moved over to something called 120 00:05:59,080 --> 00:06:02,080 Speaker 1: proof of steak where they don't use mining. And you've 121 00:06:02,080 --> 00:06:04,000 Speaker 1: been seeing over the last couple of years how bitcoin 122 00:06:04,240 --> 00:06:08,039 Speaker 1: mining specifically is this detriment to society, How it's going 123 00:06:08,120 --> 00:06:10,680 Speaker 1: to ruin the environment, how bitcoin is going to use 124 00:06:10,720 --> 00:06:13,000 Speaker 1: more energy than a small country. You're going to use 125 00:06:13,040 --> 00:06:14,280 Speaker 1: all the energy in the world, and how big of 126 00:06:14,320 --> 00:06:17,039 Speaker 1: a deal that is, how bad that is. But we're 127 00:06:17,080 --> 00:06:20,440 Speaker 1: actually seeing I've been reporting for years now, and we're 128 00:06:20,440 --> 00:06:23,120 Speaker 1: already starting to see the shift in the media's narrative 129 00:06:23,160 --> 00:06:26,640 Speaker 1: around this, We're starting to see that actually bitcoin isn't 130 00:06:26,839 --> 00:06:29,560 Speaker 1: bad for the environment. As a matter of fact, it 131 00:06:29,640 --> 00:06:32,400 Speaker 1: could just be the savior. So what do I mean 132 00:06:32,440 --> 00:06:35,839 Speaker 1: by that. Well, over the last several years, you've seen, specifically, 133 00:06:35,880 --> 00:06:39,200 Speaker 1: I've been watching in Texas how there's massive problems with 134 00:06:39,200 --> 00:06:42,200 Speaker 1: the energy system. In Texas. They had the power go 135 00:06:42,279 --> 00:06:44,240 Speaker 1: out in the winter and during a big freeze, and 136 00:06:44,320 --> 00:06:45,840 Speaker 1: it was a big problem. They had to go out 137 00:06:45,880 --> 00:06:47,479 Speaker 1: in the summer when it was too hot, and it 138 00:06:47,520 --> 00:06:50,360 Speaker 1: was a big problem. Last summer happened again, and this 139 00:06:50,480 --> 00:06:54,839 Speaker 1: summer it's just happening again. And what happens is during 140 00:06:54,880 --> 00:06:58,280 Speaker 1: certain times in periods, you need more energy than others. 141 00:06:58,279 --> 00:07:01,080 Speaker 1: Pretty simple. Right in the day when everyone's at work, 142 00:07:01,240 --> 00:07:04,080 Speaker 1: energy use is less. At night, when everybody comes home 143 00:07:04,120 --> 00:07:05,760 Speaker 1: and has to turn their lights on because it's dark, 144 00:07:05,920 --> 00:07:08,880 Speaker 1: energy surges go up. When it's hotter, everyone turns their 145 00:07:08,880 --> 00:07:10,840 Speaker 1: air condition on higher, so you can see that it's 146 00:07:10,880 --> 00:07:14,880 Speaker 1: higher usage changes. But the problem is is that if 147 00:07:14,920 --> 00:07:17,600 Speaker 1: I provide energy, I can't just turn it up and 148 00:07:17,640 --> 00:07:19,240 Speaker 1: down like that. It's not just like a knob that 149 00:07:19,280 --> 00:07:21,600 Speaker 1: I can control. And so what they've been doing is 150 00:07:21,640 --> 00:07:25,120 Speaker 1: they've been creating more base loads so they can produce 151 00:07:25,200 --> 00:07:28,640 Speaker 1: more energy all the time, but then diverting some of 152 00:07:28,680 --> 00:07:32,000 Speaker 1: that load over to bitcoin mining, and whenever they need 153 00:07:32,000 --> 00:07:35,000 Speaker 1: that excess demand, they just shut down the bitcoin mining 154 00:07:35,040 --> 00:07:36,960 Speaker 1: and put the excess demand over there. When it's not needed, 155 00:07:36,960 --> 00:07:38,920 Speaker 1: they push it back to bitcoin mining. And we just 156 00:07:38,960 --> 00:07:42,360 Speaker 1: saw that Texas was teetering on the edge of blackouts 157 00:07:42,400 --> 00:07:45,400 Speaker 1: again as they've been having this heat wave and as 158 00:07:45,400 --> 00:07:48,720 Speaker 1: the demand was squeezing on the grid, and so Texas 159 00:07:48,840 --> 00:07:53,360 Speaker 1: nearly had to start rolling out blackouts, but they didn't 160 00:07:53,400 --> 00:07:57,480 Speaker 1: have to because at nine pm local time, they called 161 00:07:57,520 --> 00:07:59,640 Speaker 1: up the bitcoin mining companies and said, hey, could you 162 00:07:59,640 --> 00:08:02,240 Speaker 1: turn off off your equipment for us please, And they 163 00:08:02,280 --> 00:08:05,400 Speaker 1: did and all that excess demand was able to go 164 00:08:05,480 --> 00:08:08,240 Speaker 1: right back to the grid. I mean, if this isn't 165 00:08:08,360 --> 00:08:11,160 Speaker 1: a wonderful fairy tale story, then I don't know what is. 166 00:08:11,640 --> 00:08:16,320 Speaker 1: Because there is no other solution for this problem without bitcoin. 167 00:08:16,920 --> 00:08:19,320 Speaker 1: Now we see the same thing happening in Iceland. Iceland's 168 00:08:19,320 --> 00:08:21,360 Speaker 1: able to create more energy than it needs, but most 169 00:08:21,440 --> 00:08:24,200 Speaker 1: of it's going to waste. They have all this excess 170 00:08:24,320 --> 00:08:27,640 Speaker 1: energy because when they need to create it for when 171 00:08:27,640 --> 00:08:30,240 Speaker 1: it surges up. But when it doesn't surge up, what 172 00:08:30,280 --> 00:08:32,360 Speaker 1: do they do with it? No one in Iceland wants 173 00:08:32,440 --> 00:08:35,600 Speaker 1: to buy this non guaranteed power. Factories don't want it, 174 00:08:36,559 --> 00:08:38,840 Speaker 1: nobody wants a Households don't want it. No one can 175 00:08:38,960 --> 00:08:42,880 Speaker 1: use it. That's because most power consumers only need it 176 00:08:42,920 --> 00:08:45,720 Speaker 1: when they're online, when they're home. But you know who 177 00:08:45,760 --> 00:08:49,960 Speaker 1: doesn't Bitcoin. So bitcoin minors can jump in and grab 178 00:08:50,000 --> 00:08:54,240 Speaker 1: that excess energy, that wasted energy and use it. And 179 00:08:54,280 --> 00:08:56,960 Speaker 1: so we're starting to see this change the entire world 180 00:08:57,040 --> 00:08:59,520 Speaker 1: that the media narratives changes changed in the world. We 181 00:08:59,559 --> 00:09:02,000 Speaker 1: saw it into Texas, happened, they saved the day. It's 182 00:09:02,000 --> 00:09:05,000 Speaker 1: happening in Iceland, and it's coming to an area near you. 183 00:09:05,280 --> 00:09:06,840 Speaker 1: If you're just tune in, you're listening to the Mark 184 00:09:06,880 --> 00:09:08,920 Speaker 1: Maas Show run through some of the latest breaking news 185 00:09:08,960 --> 00:09:10,720 Speaker 1: headlines this week, so you can stay up to date 186 00:09:11,080 --> 00:09:12,880 Speaker 1: on how this world is changing as we look at 187 00:09:12,880 --> 00:09:15,679 Speaker 1: through the links of politics, finance, and technology. I want 188 00:09:15,679 --> 00:09:16,920 Speaker 1: to come back. I want to talk about what's going 189 00:09:16,920 --> 00:09:19,880 Speaker 1: on in the US economy, what's happening in the global commodities, 190 00:09:20,840 --> 00:09:22,199 Speaker 1: and a whole lot more. You don't want to miss it. 191 00:09:22,240 --> 00:09:24,319 Speaker 1: I'll be right back in a minute. Don't go away, 192 00:09:24,480 --> 00:09:26,680 Speaker 1: I'll bear back, all right, Welcome back. If you're just 193 00:09:26,679 --> 00:09:28,480 Speaker 1: tune in, you're listening to the Mark Maas Show. We're 194 00:09:28,520 --> 00:09:30,760 Speaker 1: running through some of the latest breaking news headlines this 195 00:09:30,800 --> 00:09:32,600 Speaker 1: week so you can know what the heck is going 196 00:09:32,640 --> 00:09:36,079 Speaker 1: on as the world is going through de globalization or 197 00:09:36,120 --> 00:09:38,760 Speaker 1: as I call it, decentralization, and of course we can 198 00:09:38,800 --> 00:09:41,440 Speaker 1: see this everywhere. I've been talking about for a long 199 00:09:41,480 --> 00:09:43,320 Speaker 1: time and I will continue to talk about a long time. 200 00:09:43,440 --> 00:09:46,120 Speaker 1: Is the rise of this, well, it's deglobalization. It's the 201 00:09:46,240 --> 00:09:50,839 Speaker 1: rise of the challengers to the US homogeny, the US 202 00:09:50,880 --> 00:09:53,400 Speaker 1: dollar standard, of the US international order, whatever you want 203 00:09:53,400 --> 00:09:55,440 Speaker 1: to call it. And of course we see it with 204 00:09:55,520 --> 00:09:58,520 Speaker 1: Russia and China challenging the US order. They've been de 205 00:09:59,160 --> 00:10:01,640 Speaker 1: dollarizing for over a decade now. But now we have 206 00:10:01,679 --> 00:10:06,160 Speaker 1: the rise of the bricks. And there's some very very 207 00:10:06,160 --> 00:10:08,320 Speaker 1: interesting things if you know where to kind of look 208 00:10:08,400 --> 00:10:10,840 Speaker 1: between the weeds and see what the heck is going on. 209 00:10:10,960 --> 00:10:14,600 Speaker 1: And really, when you look at things, if you really 210 00:10:14,720 --> 00:10:19,200 Speaker 1: understand things at their first principles level, at their base level, 211 00:10:19,960 --> 00:10:22,839 Speaker 1: from a philosophical level, you know that energy is the 212 00:10:22,880 --> 00:10:25,520 Speaker 1: most important thing in the world. Without energy, nothing happens. 213 00:10:25,559 --> 00:10:28,200 Speaker 1: Life doesn't happen, Plants don't grow, animals don't grow, we 214 00:10:28,240 --> 00:10:32,439 Speaker 1: don't live. So everything comes down to energy, and the 215 00:10:32,720 --> 00:10:36,200 Speaker 1: law of energy states that energy cannot be created, it 216 00:10:36,200 --> 00:10:40,040 Speaker 1: can only be transferred. So energy from the ground transfers 217 00:10:40,040 --> 00:10:41,880 Speaker 1: to a plant. When the cow eats that plant, the 218 00:10:41,960 --> 00:10:44,320 Speaker 1: energy is transferred to the cow. When I eat the cow, 219 00:10:44,360 --> 00:10:47,120 Speaker 1: that energy is transferred to me. And when I think 220 00:10:47,120 --> 00:10:49,040 Speaker 1: and type on the computer, that energy is transferred. So 221 00:10:49,040 --> 00:10:53,839 Speaker 1: we transfer where its transferring. Oil has been the base 222 00:10:53,880 --> 00:10:56,440 Speaker 1: of that, and you can look back through history and 223 00:10:56,440 --> 00:10:59,440 Speaker 1: see that the nations that have the oil have been 224 00:10:59,480 --> 00:11:01,120 Speaker 1: the ones that been the most prosperous and have been 225 00:11:01,160 --> 00:11:03,880 Speaker 1: able to control kind of the world. And that's why 226 00:11:03,960 --> 00:11:07,160 Speaker 1: the US dollars maintained its global homogyny because of the 227 00:11:07,240 --> 00:11:10,040 Speaker 1: Petro dollar, the agreement that was found that started with 228 00:11:10,679 --> 00:11:14,679 Speaker 1: Saudi Arabia in nineteen seventy four to always price dollars 229 00:11:14,679 --> 00:11:17,480 Speaker 1: in oil. But all of that's being threatened now because 230 00:11:17,480 --> 00:11:21,680 Speaker 1: of the bricks nations, and so Russia part of the bricks, 231 00:11:21,720 --> 00:11:24,720 Speaker 1: the r and the bricks Saudi Arabia, who's now a 232 00:11:24,760 --> 00:11:28,880 Speaker 1: new entrance into the bricks are now, you know, some 233 00:11:28,960 --> 00:11:31,800 Speaker 1: of the largest oil producers in the world, and they're 234 00:11:31,880 --> 00:11:34,800 Speaker 1: deciding that they don't want to keep pumping out their 235 00:11:34,840 --> 00:11:38,720 Speaker 1: scarce resources out into the world in exchange for US 236 00:11:38,800 --> 00:11:41,680 Speaker 1: dollar treasuries that are just losing value, and so they've 237 00:11:41,720 --> 00:11:45,679 Speaker 1: been deciding to reduce the amount of oil they're producing. 238 00:11:45,679 --> 00:11:48,199 Speaker 1: As a matter of fact, Saudi Arabia has extended its 239 00:11:48,320 --> 00:11:52,040 Speaker 1: voluntary cut of one million barrels per day until the 240 00:11:52,120 --> 00:11:53,760 Speaker 1: end of the year. Now, a lot of this pushed 241 00:11:53,760 --> 00:11:56,319 Speaker 1: oil prices up, which then in turn push all energy 242 00:11:56,320 --> 00:11:59,720 Speaker 1: prices up, which then in turn pushed every single price up. 243 00:12:00,040 --> 00:12:03,840 Speaker 1: The Bite administration tried to counteract it, and not tried 244 00:12:03,880 --> 00:12:07,200 Speaker 1: to they did. They were able to counteract that by 245 00:12:07,720 --> 00:12:13,120 Speaker 1: dumping our strategic petroleum reserves, so they drained them. As 246 00:12:13,160 --> 00:12:16,120 Speaker 1: a matter of fact, the petroleum reserves are now at 247 00:12:16,160 --> 00:12:20,120 Speaker 1: the lowest levels they've been in forty years, following last 248 00:12:20,160 --> 00:12:24,640 Speaker 1: year's record drawdowns. At the same time, US production of 249 00:12:24,720 --> 00:12:27,079 Speaker 1: oil is at an all time As a matter of fact, 250 00:12:27,200 --> 00:12:29,360 Speaker 1: US produced twelve point eight million barrels per day of 251 00:12:29,400 --> 00:12:33,520 Speaker 1: crude oil in June, matching its production from pre pandemic 252 00:12:33,559 --> 00:12:37,840 Speaker 1: back to February of twenty twenty. But even with the 253 00:12:38,040 --> 00:12:42,280 Speaker 1: US's increased production and the draining of the SPR, we're 254 00:12:42,280 --> 00:12:44,200 Speaker 1: seeing that the oil prices are going back up. They're 255 00:12:44,240 --> 00:12:46,320 Speaker 1: up to a new one year high this week, and 256 00:12:46,400 --> 00:12:49,720 Speaker 1: it looks like it's going to continue moving higher now. 257 00:12:49,760 --> 00:12:51,920 Speaker 1: Like I said, in the past, the US has been 258 00:12:52,040 --> 00:12:55,440 Speaker 1: dumping d SPR patroleum reserve into the market to bring 259 00:12:55,520 --> 00:12:58,720 Speaker 1: you dump more supply to bring the price down. But 260 00:12:58,760 --> 00:13:01,400 Speaker 1: the problem is, like I said, that it's running low. 261 00:13:01,440 --> 00:13:03,720 Speaker 1: As a matter of fact, that the lowest since nineteen 262 00:13:03,960 --> 00:13:08,920 Speaker 1: eighty three. So what are they gonna do. We're already 263 00:13:09,120 --> 00:13:11,600 Speaker 1: maxing out the amount of oil we can produce. We've 264 00:13:11,640 --> 00:13:14,319 Speaker 1: already dumped pretty much everything that we can into the market. 265 00:13:14,880 --> 00:13:17,120 Speaker 1: But the problem is is that no matter how much 266 00:13:17,160 --> 00:13:18,760 Speaker 1: we dump into the market, which we run out of, 267 00:13:18,800 --> 00:13:24,720 Speaker 1: no matter how much we produce, Russia, Saudi Arabia, Iran, 268 00:13:25,000 --> 00:13:28,400 Speaker 1: they just turned theirs down. You see. They can play 269 00:13:28,440 --> 00:13:31,240 Speaker 1: this game for a lot longer than we can, and 270 00:13:31,320 --> 00:13:35,000 Speaker 1: so we're not really able to control the price of energy. 271 00:13:35,120 --> 00:13:39,679 Speaker 1: And it's a problem. And it's a problem because, as 272 00:13:39,720 --> 00:13:42,400 Speaker 1: I said, when the price of energy goes up everything 273 00:13:42,559 --> 00:13:44,679 Speaker 1: goes up. You know that food that you went eat 274 00:13:44,720 --> 00:13:46,960 Speaker 1: at Chipotle and picked up at your grocery store, It 275 00:13:47,040 --> 00:13:50,000 Speaker 1: had to be driven there, and it probably had to 276 00:13:50,040 --> 00:13:53,040 Speaker 1: be shipped on a plane or a boat to get there, 277 00:13:53,960 --> 00:13:55,600 Speaker 1: and it probably had to be dug out of the 278 00:13:55,600 --> 00:14:01,359 Speaker 1: ground with a tractor. And all of those things require energy. 279 00:14:01,400 --> 00:14:03,439 Speaker 1: And so when the price of energy goes up, everything 280 00:14:03,480 --> 00:14:06,920 Speaker 1: goes up, and energy is going up. Now again, the 281 00:14:07,960 --> 00:14:10,800 Speaker 1: treat petrol reserves are not just dwindled down to their 282 00:14:10,800 --> 00:14:13,920 Speaker 1: lowest level, but they're dangerously low. And so now we're 283 00:14:13,960 --> 00:14:16,280 Speaker 1: in a situation where the US is actually now trying 284 00:14:16,280 --> 00:14:18,679 Speaker 1: to refill them and buy more oil. As a matter 285 00:14:18,720 --> 00:14:21,320 Speaker 1: of fact, the Department of Energy, the DOE, purchased three 286 00:14:21,440 --> 00:14:25,160 Speaker 1: million barrels of crude oil for the spr for delivery 287 00:14:25,200 --> 00:14:29,040 Speaker 1: in August. The average price per barrel was seventy three dollars, 288 00:14:29,680 --> 00:14:31,880 Speaker 1: which is lower than the average price of ninety five 289 00:14:31,920 --> 00:14:34,200 Speaker 1: dollars per barrel that the oil is sold for last year. 290 00:14:34,280 --> 00:14:37,240 Speaker 1: So they did okay. They sold it for about ninety 291 00:14:37,240 --> 00:14:39,760 Speaker 1: five bucks. They bought it back for in the seventies. 292 00:14:40,320 --> 00:14:43,800 Speaker 1: Not a bad trade. They are purchasing this from Exon 293 00:14:43,920 --> 00:14:48,000 Speaker 1: Chevron Marathon Valero not bad. I don't know if that's 294 00:14:48,040 --> 00:14:51,120 Speaker 1: a good strategy. I don't think the Biden administration should 295 00:14:51,120 --> 00:14:54,000 Speaker 1: be trying to trade the oil that we have, but 296 00:14:54,040 --> 00:14:56,320 Speaker 1: so far it worked. Now, they had originally said they 297 00:14:56,320 --> 00:14:58,480 Speaker 1: were going to buy oil when it was in the 298 00:14:59,000 --> 00:15:02,880 Speaker 1: seventy dollars range. They sort of missed that, but they 299 00:15:02,920 --> 00:15:05,960 Speaker 1: are buying three They did buy three million barrels oil. 300 00:15:06,000 --> 00:15:09,160 Speaker 1: But here's the problem. You see, in order to get 301 00:15:09,160 --> 00:15:14,200 Speaker 1: prices to come down, they were selling it to increase 302 00:15:14,240 --> 00:15:18,000 Speaker 1: the supply. But the problem is Saudi Arabis and Russia says, well, 303 00:15:18,040 --> 00:15:20,400 Speaker 1: then we'll just turn down our supply, will counteract that. 304 00:15:21,000 --> 00:15:23,800 Speaker 1: So now we're in a period where they're turning down 305 00:15:23,840 --> 00:15:28,640 Speaker 1: their supply and now the spr has to be refilled. 306 00:15:29,680 --> 00:15:33,360 Speaker 1: So what happens with that? Well, if you want to 307 00:15:33,360 --> 00:15:36,440 Speaker 1: know what I think, I think it means more inflation ahead. 308 00:15:36,480 --> 00:15:39,440 Speaker 1: I think oil continues to go up. I think that 309 00:15:40,160 --> 00:15:43,360 Speaker 1: inflation continues to go up. And this is a big 310 00:15:43,400 --> 00:15:45,480 Speaker 1: problem now, as I always say, nothing goes up or 311 00:15:45,480 --> 00:15:48,200 Speaker 1: down in a straight line. Now, a lot of the 312 00:15:48,200 --> 00:15:51,520 Speaker 1: headlines that you saw basically illustrated that they just didn't 313 00:15:51,560 --> 00:15:53,400 Speaker 1: understand what they were saying, so, for example, you saw 314 00:15:53,440 --> 00:15:56,440 Speaker 1: headlines of the last month or two oil's crashing. You know, 315 00:15:56,480 --> 00:15:58,800 Speaker 1: the last several months, six eight months, oil's crashing. As 316 00:15:58,840 --> 00:16:00,920 Speaker 1: a matter of fact, it's the reason high inflation has 317 00:16:00,960 --> 00:16:02,560 Speaker 1: come back down to where it is. I've broken this 318 00:16:02,600 --> 00:16:04,840 Speaker 1: down many times. If you look at the CPI basket, 319 00:16:04,880 --> 00:16:07,840 Speaker 1: the Consumer Price Index, you can see that it's broken 320 00:16:07,880 --> 00:16:10,600 Speaker 1: down by food and shelter and energy and things like that, 321 00:16:10,800 --> 00:16:13,000 Speaker 1: and you can see that it was just energy that 322 00:16:13,080 --> 00:16:16,000 Speaker 1: was coming down. Nothing else was really coming down. It 323 00:16:16,120 --> 00:16:19,280 Speaker 1: was just energy. And the reason why is because when 324 00:16:19,360 --> 00:16:22,600 Speaker 1: the Russia Ukraine War kicked off and the sanctions were 325 00:16:22,640 --> 00:16:24,920 Speaker 1: placed on Russia, the whole world thought, we're going to 326 00:16:24,920 --> 00:16:27,680 Speaker 1: go into this massive supply problem where all that Russian 327 00:16:27,760 --> 00:16:30,320 Speaker 1: energy would come off the market, and so the price 328 00:16:30,440 --> 00:16:32,200 Speaker 1: is shot up in advance of that, and we went 329 00:16:32,240 --> 00:16:35,160 Speaker 1: from about eighty ninety dollars a barrel up to about 330 00:16:35,160 --> 00:16:38,200 Speaker 1: one point fifty. But then pretty soon, very quickly, the 331 00:16:38,240 --> 00:16:40,680 Speaker 1: world sort of realized, well, none of these sanctions at 332 00:16:40,680 --> 00:16:42,320 Speaker 1: the US or the G seven placed on them, or 333 00:16:42,360 --> 00:16:46,400 Speaker 1: NATO placed on them worked. Caps on Russian oil didn't work. 334 00:16:47,040 --> 00:16:49,040 Speaker 1: The Russian oil is still going to market, and so 335 00:16:49,200 --> 00:16:52,560 Speaker 1: the prices just came back down to where they were 336 00:16:52,960 --> 00:16:55,440 Speaker 1: before all this happened. So all these headlines that you 337 00:16:55,440 --> 00:16:59,560 Speaker 1: saw where it's plunging, it's crashing, No, it was just 338 00:16:59,600 --> 00:17:02,960 Speaker 1: returning back to where it was before it had artificially 339 00:17:03,000 --> 00:17:05,199 Speaker 1: spiked based off of an assumption that never came to 340 00:17:05,240 --> 00:17:11,679 Speaker 1: be true. So now we're back into normal territory and 341 00:17:11,720 --> 00:17:14,479 Speaker 1: now it's going back up. Now. In addition to this, 342 00:17:14,520 --> 00:17:16,280 Speaker 1: again you always have to just think about supply and demand. 343 00:17:16,280 --> 00:17:19,359 Speaker 1: It's actually pretty simple. Now, it's not simple to understand 344 00:17:19,359 --> 00:17:21,240 Speaker 1: all the dynamics that make up supply and demand. But 345 00:17:21,280 --> 00:17:24,520 Speaker 1: I saw this week more headlines that the United States 346 00:17:24,520 --> 00:17:28,920 Speaker 1: decided to close more oil and gas permits to drill 347 00:17:29,000 --> 00:17:31,119 Speaker 1: for oil and gas that were given under the Trump administration. 348 00:17:31,200 --> 00:17:33,679 Speaker 1: So Trump opened it up, we could increase the supply, 349 00:17:34,040 --> 00:17:36,439 Speaker 1: and again the Bide administration is shutting them down. So 350 00:17:36,720 --> 00:17:41,320 Speaker 1: if we continue to shut down the supply side, the 351 00:17:41,359 --> 00:17:43,919 Speaker 1: rest of the world cuts down the supply side, and 352 00:17:43,960 --> 00:17:45,480 Speaker 1: the US has to be a buyer to fill up 353 00:17:45,480 --> 00:17:48,880 Speaker 1: the sprs. And turns out you and I still need 354 00:17:49,040 --> 00:17:51,600 Speaker 1: energy to live. Turns out we still need to ship 355 00:17:51,600 --> 00:17:56,359 Speaker 1: food around the world. Turns out. So what happens and 356 00:17:56,480 --> 00:17:59,359 Speaker 1: that's the price going up. You got that good thing. 357 00:17:59,359 --> 00:18:00,679 Speaker 1: You're figured that out right. If you're just tuning in 358 00:18:00,760 --> 00:18:02,200 Speaker 1: us into the Mark Maas Show, I'm breaking down the 359 00:18:02,280 --> 00:18:04,240 Speaker 1: latest news headlines of this week. I got a lot 360 00:18:04,280 --> 00:18:06,120 Speaker 1: more to cover, but I gotta take quick break. I'll 361 00:18:06,119 --> 00:18:08,439 Speaker 1: be right back. Don't go away, all right, welcome back. 362 00:18:08,480 --> 00:18:10,560 Speaker 1: If you're just tune in, you're listening to the Marcomas Show. 363 00:18:10,600 --> 00:18:13,120 Speaker 1: We're talking through some of the latest breaking news headlines 364 00:18:13,160 --> 00:18:15,639 Speaker 1: this week, so you can understand what is going on 365 00:18:15,680 --> 00:18:19,240 Speaker 1: in the world through the lens of politics, finance, and technology. 366 00:18:19,400 --> 00:18:21,800 Speaker 1: And I want to dig into the economy for a 367 00:18:21,840 --> 00:18:23,879 Speaker 1: little bit here. It's a sort of a tale of 368 00:18:23,880 --> 00:18:27,680 Speaker 1: two markets, if you will. Right where we see that 369 00:18:27,920 --> 00:18:31,720 Speaker 1: there's all these signs that the economy is not doing 370 00:18:31,760 --> 00:18:34,920 Speaker 1: good and we're headed forward recession. But then we see 371 00:18:34,960 --> 00:18:36,960 Speaker 1: all these other signs that looks like the economy is 372 00:18:37,080 --> 00:18:41,119 Speaker 1: really good. We see signs. Well, when you see the 373 00:18:41,119 --> 00:18:43,159 Speaker 1: economy not doing good and potentially going to recession, then 374 00:18:43,200 --> 00:18:46,920 Speaker 1: why is the markets doing so good? The equities, the stocks, 375 00:18:47,359 --> 00:18:51,240 Speaker 1: but then the bond markets are looking bad. So we're 376 00:18:51,280 --> 00:18:55,359 Speaker 1: seeing this like a bipolar viewpoint in both the economy 377 00:18:55,400 --> 00:18:58,119 Speaker 1: and the markets. And I say that in two separate things, right, 378 00:18:58,160 --> 00:19:00,680 Speaker 1: the economy and the markets. We're breaking these apart. And 379 00:19:01,040 --> 00:19:03,800 Speaker 1: it's important to understand this piece because you have to 380 00:19:03,840 --> 00:19:07,040 Speaker 1: realize that the economy is not the market now. It 381 00:19:07,080 --> 00:19:11,119 Speaker 1: should be it used to be. Because if an economy 382 00:19:11,160 --> 00:19:13,320 Speaker 1: is doing good, meaning you know, people have money, people 383 00:19:13,320 --> 00:19:18,359 Speaker 1: are buying, and you know everyone's happy, everyone's spending money, 384 00:19:18,400 --> 00:19:23,320 Speaker 1: then I'm spending money at stores, buying goods and services, 385 00:19:23,520 --> 00:19:27,760 Speaker 1: which means then those businesses do better in their reporting, 386 00:19:27,800 --> 00:19:31,119 Speaker 1: they post higher revenues, higher profits, and then it pushes 387 00:19:31,160 --> 00:19:33,320 Speaker 1: the stock prices up. That's how it's supposed to work, 388 00:19:33,760 --> 00:19:36,600 Speaker 1: but we became detached from reality over the last decade 389 00:19:36,680 --> 00:19:38,960 Speaker 1: or so when we kind of went to this era 390 00:19:39,000 --> 00:19:41,520 Speaker 1: of free money where the stocks that do the best 391 00:19:41,600 --> 00:19:43,800 Speaker 1: are ones that don't even make any money, which is 392 00:19:43,840 --> 00:19:46,159 Speaker 1: kind of weird, but really where the disconnect happened was 393 00:19:46,240 --> 00:19:49,320 Speaker 1: in twenty twenty and during the pandemic, we saw like 394 00:19:49,640 --> 00:19:52,520 Speaker 1: literally the entire economy shut down, like literally, businesses that 395 00:19:52,600 --> 00:19:55,159 Speaker 1: have been around for decades were forced to close, stores 396 00:19:55,200 --> 00:19:59,080 Speaker 1: were forced to close, and so the economy just completely cratered, 397 00:19:59,600 --> 00:20:02,680 Speaker 1: but the markets took off to new all time highs. 398 00:20:03,320 --> 00:20:05,199 Speaker 1: And so now we see this two separate things. And 399 00:20:05,320 --> 00:20:07,880 Speaker 1: it's important at least for me to think about these 400 00:20:07,880 --> 00:20:10,280 Speaker 1: things separately, because the markets do not equally the economies. 401 00:20:10,280 --> 00:20:12,800 Speaker 1: So the economy could crash again, but it doesn't necessarily 402 00:20:12,840 --> 00:20:15,399 Speaker 1: mean the markets will. They could, doesn't mean they have to. 403 00:20:15,560 --> 00:20:17,480 Speaker 1: So if we look at the economy, like I said, 404 00:20:17,560 --> 00:20:21,600 Speaker 1: there's there's a lot of bipolar signs that we're looking at. So, 405 00:20:21,640 --> 00:20:24,439 Speaker 1: for example, the economy seems great. We have some of 406 00:20:24,440 --> 00:20:28,960 Speaker 1: the lowest lowest unemployment that we've seen in decades. That's great. 407 00:20:29,840 --> 00:20:33,879 Speaker 1: We are seeing that, you know, stores, retailers, companies are 408 00:20:33,880 --> 00:20:39,560 Speaker 1: still reporting record earnings, record revenues, record earnings. Consumers are buying. 409 00:20:40,400 --> 00:20:44,000 Speaker 1: Sentiment is great. So that looks good. But if you 410 00:20:44,119 --> 00:20:45,919 Speaker 1: dig under the hood a little bit, which is what 411 00:20:45,920 --> 00:20:50,480 Speaker 1: you should be doing, we can also see that while yeah, 412 00:20:50,560 --> 00:20:52,840 Speaker 1: while people, while consumers are buying, we can see that 413 00:20:52,880 --> 00:20:55,720 Speaker 1: their savings are getting depleted at a very rapid rate, 414 00:20:55,760 --> 00:20:57,720 Speaker 1: which look at the money supply, we can see that 415 00:20:57,760 --> 00:21:02,840 Speaker 1: their credit card debt, consumer debt is skyrocketing through the roof, 416 00:21:02,880 --> 00:21:05,439 Speaker 1: and so it looks like savings them been depleted, and 417 00:21:05,640 --> 00:21:08,119 Speaker 1: all of this spending that looks like the economy is 418 00:21:08,119 --> 00:21:11,320 Speaker 1: good is happening off of debt. And the problem is 419 00:21:11,320 --> 00:21:13,600 Speaker 1: is that debt runs out. And it's not just that 420 00:21:13,640 --> 00:21:16,080 Speaker 1: debt runs out, it's that debt runs out, and it 421 00:21:16,160 --> 00:21:18,800 Speaker 1: also has to be repaid, and it has to be 422 00:21:18,880 --> 00:21:22,000 Speaker 1: repaid from future earnings. And so what this does is 423 00:21:22,000 --> 00:21:26,560 Speaker 1: it really impairs the future. Now, if that's not bad enough, 424 00:21:26,600 --> 00:21:29,359 Speaker 1: what we can see is that it's already starting to 425 00:21:29,440 --> 00:21:31,880 Speaker 1: get to a very dangerous point. As a matter of fact, 426 00:21:31,920 --> 00:21:36,399 Speaker 1: we saw this week headlines came out that delinquencies for 427 00:21:36,560 --> 00:21:41,320 Speaker 1: credit card payments and auto loans are skyrocketing. As a 428 00:21:41,320 --> 00:21:44,399 Speaker 1: matter of fact, the default rate for credit card payments 429 00:21:44,400 --> 00:21:47,800 Speaker 1: and consumer loans are at their highest levels in a decade. 430 00:21:48,280 --> 00:21:50,320 Speaker 1: We can see that more and more consumers are missing 431 00:21:50,359 --> 00:21:53,639 Speaker 1: payments on their household debt, and it gets even worse 432 00:21:54,160 --> 00:21:56,639 Speaker 1: for the first time ever. According to the Washington Post, 433 00:21:56,920 --> 00:22:00,840 Speaker 1: Americans are on the hook for more than one trillion 434 00:22:01,400 --> 00:22:05,639 Speaker 1: dollars in credit card debt and the delinquency rate is 435 00:22:05,840 --> 00:22:11,160 Speaker 1: almost four percent according to Moodies. Now you have good 436 00:22:11,200 --> 00:22:13,359 Speaker 1: debt and bad debt. Let me table that I'm gonna 437 00:22:13,359 --> 00:22:16,320 Speaker 1: come back to that. We have five point four percent 438 00:22:16,359 --> 00:22:20,000 Speaker 1: of consumer loans and three point six percent of auto 439 00:22:20,040 --> 00:22:26,800 Speaker 1: loans are also late. Now that's credit cards, consumer loans, 440 00:22:27,520 --> 00:22:30,919 Speaker 1: and auto loans. Now, auto loans at least there's an 441 00:22:31,000 --> 00:22:33,280 Speaker 1: asset there. So you have the car. The problem is 442 00:22:33,280 --> 00:22:35,359 Speaker 1: the car is going down faster than you're paying the 443 00:22:35,359 --> 00:22:39,040 Speaker 1: debt down. But your credit card debt and most consumer 444 00:22:39,080 --> 00:22:41,880 Speaker 1: loans are for stuff that you don't have anymore. There's 445 00:22:42,359 --> 00:22:47,359 Speaker 1: no there's no asset there. Now to add insult to injury, 446 00:22:47,480 --> 00:22:51,320 Speaker 1: so to speak, the average credit card interest rate is 447 00:22:51,440 --> 00:22:55,680 Speaker 1: roughly twenty one percent. Now that that's a massive rate. 448 00:22:56,119 --> 00:22:59,320 Speaker 1: If you put that into sort of some frame of reference, 449 00:22:59,640 --> 00:23:02,560 Speaker 1: it's like doubling every three or four years at that rate. 450 00:23:03,160 --> 00:23:05,400 Speaker 1: So every three and a half years your debt doubles. 451 00:23:06,640 --> 00:23:08,720 Speaker 1: How are you going to pay that back? Now, it's 452 00:23:08,720 --> 00:23:11,680 Speaker 1: important to understand that there's two types of debt. There's 453 00:23:11,800 --> 00:23:15,960 Speaker 1: good debt and there's bad debt. There's productive debt and 454 00:23:16,000 --> 00:23:22,440 Speaker 1: there's destructive debt. Consumer debt, consumer loans, credit cards. That's destructive. 455 00:23:22,840 --> 00:23:24,760 Speaker 1: You spend the money on a vacation, you spend the 456 00:23:24,800 --> 00:23:28,359 Speaker 1: money going out to eat. There's nothing behind that debt. 457 00:23:28,600 --> 00:23:31,560 Speaker 1: You just have the debt. You're paying twenty one percent interest, 458 00:23:31,720 --> 00:23:34,080 Speaker 1: and that means the debt is doubling every three and 459 00:23:34,080 --> 00:23:36,640 Speaker 1: a half years. And it's not just those We see 460 00:23:36,640 --> 00:23:38,760 Speaker 1: that Americans are so strapped for cash that they're resorting 461 00:23:38,800 --> 00:23:42,639 Speaker 1: to now, these buy now, Paid Later options BNPL. You 462 00:23:42,720 --> 00:23:44,520 Speaker 1: might have heard about this before. It's when you go 463 00:23:44,560 --> 00:23:47,359 Speaker 1: shopping on your favorite e commerce website and then at 464 00:23:47,400 --> 00:23:50,200 Speaker 1: check out you have this option to buy now, pay later. 465 00:23:50,680 --> 00:23:52,720 Speaker 1: These programs have gotten all the rage. They've been going 466 00:23:52,720 --> 00:23:57,199 Speaker 1: really fast, and they work well. I suppose right for 467 00:23:57,480 --> 00:24:00,280 Speaker 1: larger purchases that you can't afford, like a you know, 468 00:24:00,320 --> 00:24:04,320 Speaker 1: like a TV, or furniture things like that, but I 469 00:24:04,480 --> 00:24:06,479 Speaker 1: see them for all types of things. I see them 470 00:24:06,520 --> 00:24:08,399 Speaker 1: for low ticket items that you should able to just 471 00:24:08,400 --> 00:24:10,760 Speaker 1: pay outright, Why would you defer the payments on that. 472 00:24:11,000 --> 00:24:13,439 Speaker 1: As a matter of fact, lending Tree found that twenty 473 00:24:13,520 --> 00:24:17,000 Speaker 1: one percent of respond and say that they're using these 474 00:24:17,119 --> 00:24:21,560 Speaker 1: buy now, Paid later loans just to buy groceries. We 475 00:24:21,640 --> 00:24:24,080 Speaker 1: see when you're using your credit cards, when you're using 476 00:24:24,119 --> 00:24:27,840 Speaker 1: these buy now, pay later programs just to buy food. Unfortunately, 477 00:24:28,000 --> 00:24:31,080 Speaker 1: that's a bad sign for the economy. And like I said, 478 00:24:31,680 --> 00:24:33,560 Speaker 1: there's good debt and bad debt. When you're buying it 479 00:24:33,560 --> 00:24:36,320 Speaker 1: for food, that's bad debt. Now, for the past decade, 480 00:24:36,320 --> 00:24:41,719 Speaker 1: consumer spending has increased each holiday season, and researchers are 481 00:24:41,720 --> 00:24:45,479 Speaker 1: expecting more growth ahead. Well, we see it. We don't know, 482 00:24:46,720 --> 00:24:49,240 Speaker 1: but we do know that it's getting more and more 483 00:24:49,280 --> 00:24:52,000 Speaker 1: expensive to live off credit cards. We can see that 484 00:24:52,080 --> 00:24:56,359 Speaker 1: savings rates are going down. We can see so we 485 00:24:56,400 --> 00:25:00,800 Speaker 1: see these all over. So what gives what's the tail 486 00:25:00,840 --> 00:25:05,160 Speaker 1: of the market. Well, and we also know that right now, 487 00:25:05,320 --> 00:25:08,240 Speaker 1: historically unemployment rate is still very low. It's gone from 488 00:25:08,280 --> 00:25:10,560 Speaker 1: three point five percent up to three point eight percent. 489 00:25:10,560 --> 00:25:13,480 Speaker 1: It's still under four percent, which is historically low, but 490 00:25:13,560 --> 00:25:15,920 Speaker 1: it is the highest level that we've seen in about 491 00:25:15,920 --> 00:25:19,399 Speaker 1: a year and a half right now. We also know 492 00:25:19,480 --> 00:25:23,200 Speaker 1: that unemployment is a what we call a lagging indicator, 493 00:25:23,600 --> 00:25:25,920 Speaker 1: so it doesn't really tell us what's about to happen. 494 00:25:25,960 --> 00:25:28,320 Speaker 1: It typically tells what already happened. And the reason why 495 00:25:28,440 --> 00:25:31,879 Speaker 1: is because most employers or business owners don't want to 496 00:25:31,960 --> 00:25:34,479 Speaker 1: lay people off. It's hard to find good people, so 497 00:25:34,520 --> 00:25:36,480 Speaker 1: you try to make every cut that you can. You 498 00:25:36,520 --> 00:25:38,440 Speaker 1: probably go without your own pay for a while before 499 00:25:38,440 --> 00:25:41,720 Speaker 1: you let people go. So it's like the last ditch resort. 500 00:25:42,119 --> 00:25:43,960 Speaker 1: And so that's why it's a lagging indicator. But we 501 00:25:44,000 --> 00:25:45,879 Speaker 1: also did see which I thought was pretty interesting, the 502 00:25:45,960 --> 00:25:49,920 Speaker 1: labor force participation rate actually went up. It's at sixty 503 00:25:49,960 --> 00:25:51,840 Speaker 1: two point eight percent. It's the highest level since the 504 00:25:51,840 --> 00:25:55,560 Speaker 1: pandemic began in February of twenty twenty. And so you 505 00:25:55,600 --> 00:25:59,760 Speaker 1: have unemployment only measures the people that are looking for work, 506 00:26:00,560 --> 00:26:03,520 Speaker 1: a real gimmicky, you know, it's a way that the 507 00:26:03,560 --> 00:26:06,680 Speaker 1: government can lie about the data. Basically, so unemployment tells 508 00:26:06,680 --> 00:26:09,240 Speaker 1: you the the how many people don't have jobs who 509 00:26:09,840 --> 00:26:13,320 Speaker 1: want jobs. The labor force participation rates a better number 510 00:26:13,320 --> 00:26:17,160 Speaker 1: because it tells you of the working age population how 511 00:26:17,240 --> 00:26:20,400 Speaker 1: many of them are working, And so it rose. It's 512 00:26:20,400 --> 00:26:23,720 Speaker 1: a sixty two point almost sixty three percent. But that 513 00:26:23,880 --> 00:26:29,560 Speaker 1: means that thirty two percent are not working able bodied 514 00:26:29,680 --> 00:26:31,680 Speaker 1: of the correct age decide they don't want to work. 515 00:26:32,080 --> 00:26:35,000 Speaker 1: And so while that's getting better, it's still pretty low. 516 00:26:35,440 --> 00:26:37,280 Speaker 1: But this is where we're at. This is the tale 517 00:26:37,480 --> 00:26:42,040 Speaker 1: of two markets. Right now, everything looks great. Companies are 518 00:26:42,040 --> 00:26:46,960 Speaker 1: reporting better earnings, better revenues. The markets are strong. Unemployment's good, 519 00:26:47,200 --> 00:26:49,720 Speaker 1: but what we can see is that it's coming off 520 00:26:49,760 --> 00:26:55,639 Speaker 1: of the back of savings being drained down, and it's 521 00:26:55,680 --> 00:26:59,360 Speaker 1: coming off of the back of credit card debt. That's 522 00:26:59,359 --> 00:27:01,040 Speaker 1: not good. If you're tuning in, you listening to the 523 00:27:01,040 --> 00:27:02,760 Speaker 1: Mark Maus Show, I got to take a very quick break, 524 00:27:02,760 --> 00:27:04,520 Speaker 1: but I'm going to come back with more in a second. 525 00:27:04,760 --> 00:27:06,160 Speaker 1: You don't want to miss it, so don't go away. 526 00:27:06,200 --> 00:27:08,600 Speaker 1: I've be'er back. All right, Welcome back. If you're just 527 00:27:08,640 --> 00:27:10,359 Speaker 1: tune in, you're listening to the Mark mass Show, and 528 00:27:10,359 --> 00:27:12,680 Speaker 1: we're running through some of the latest breaking news headlines 529 00:27:12,680 --> 00:27:15,959 Speaker 1: that we saw this week that are literally showing us 530 00:27:16,000 --> 00:27:18,760 Speaker 1: the play by play of how the world is breaking apart, 531 00:27:18,760 --> 00:27:21,560 Speaker 1: the decentralization, the deglobalization, whatever you want to call it. 532 00:27:22,000 --> 00:27:24,600 Speaker 1: And I like to look at through the lens of politics, finance, 533 00:27:24,800 --> 00:27:28,359 Speaker 1: and technology, so you can really bring things into context 534 00:27:28,440 --> 00:27:30,960 Speaker 1: of what's going on. You know, we talked about in 535 00:27:30,960 --> 00:27:32,639 Speaker 1: an earlier segment. I was talking about the law of 536 00:27:32,720 --> 00:27:37,800 Speaker 1: unintended consequences, and really to understand unattended consequences, you kind 537 00:27:37,800 --> 00:27:40,919 Speaker 1: of have to think through first, second, third, fourth, fifth 538 00:27:41,040 --> 00:27:45,479 Speaker 1: order effects. Because most people only think about first order effects. So, 539 00:27:45,520 --> 00:27:49,840 Speaker 1: for example, we have poor people, we should give poor 540 00:27:49,880 --> 00:27:53,480 Speaker 1: people free money. That sounds nice, let's help them out. 541 00:27:53,480 --> 00:27:56,040 Speaker 1: But what happens if we do well? Then they don't 542 00:27:56,080 --> 00:27:58,919 Speaker 1: go work and they become dependent on the system and 543 00:27:58,960 --> 00:28:01,120 Speaker 1: then the game, right, and then and then what happens? 544 00:28:01,240 --> 00:28:02,439 Speaker 1: And then what happens? And so you have to kind 545 00:28:02,480 --> 00:28:04,240 Speaker 1: of ask that question. One of the things that we 546 00:28:04,280 --> 00:28:09,160 Speaker 1: see today is it's I want to say it's comical, 547 00:28:09,880 --> 00:28:13,000 Speaker 1: but it's not. We shouldn't be laughing. But it's sort 548 00:28:13,040 --> 00:28:14,720 Speaker 1: of like one of those things where like I told 549 00:28:14,720 --> 00:28:16,639 Speaker 1: you so, and like now you got to like you 550 00:28:16,680 --> 00:28:17,840 Speaker 1: made your bed and you gotta sleep in and so 551 00:28:17,960 --> 00:28:20,200 Speaker 1: to speak. And what am I talking about specifically, Well, 552 00:28:21,760 --> 00:28:25,200 Speaker 1: you know, these are these are difficult questions and topics 553 00:28:25,200 --> 00:28:28,200 Speaker 1: to talk about. But I think about the immigration problem 554 00:28:28,200 --> 00:28:29,679 Speaker 1: that we have in the United States, and when I 555 00:28:29,720 --> 00:28:32,800 Speaker 1: say immigration problem, that there's a lot to unpack there. Now. 556 00:28:33,680 --> 00:28:35,560 Speaker 1: One of the greatest problems at the US and every 557 00:28:35,560 --> 00:28:41,320 Speaker 1: developed nation has right now is depopulation. And not because 558 00:28:41,360 --> 00:28:43,360 Speaker 1: of Bill Gates or something like that. I'm talking about 559 00:28:43,440 --> 00:28:45,240 Speaker 1: just we have old people and we don't have enough 560 00:28:45,240 --> 00:28:48,280 Speaker 1: young people. Right That's the problem. China's got a real 561 00:28:48,320 --> 00:28:50,280 Speaker 1: big problem. They had thirty years of a one child policy. 562 00:28:50,920 --> 00:28:55,360 Speaker 1: So the United States needs migration. We need people coming 563 00:28:55,360 --> 00:28:57,280 Speaker 1: from other countries if we're going to survive. We're just 564 00:28:57,320 --> 00:28:59,440 Speaker 1: not people. Americans just doren't have enough kids. As a 565 00:28:59,480 --> 00:29:02,280 Speaker 1: matter of fact, we saw we're trying to onshore a 566 00:29:02,280 --> 00:29:05,640 Speaker 1: lot of new manufacturing and in Arizona they're trying to 567 00:29:05,640 --> 00:29:10,000 Speaker 1: build these new TSMC chip manufacturing plants that are from Taiwan, 568 00:29:10,320 --> 00:29:13,080 Speaker 1: but they can't get enough good workers. We just don't 569 00:29:13,120 --> 00:29:15,520 Speaker 1: have smart people. Everybody wants to be a YouTuber, and 570 00:29:15,600 --> 00:29:17,960 Speaker 1: so we don't have these people to work at these plans. 571 00:29:18,120 --> 00:29:22,000 Speaker 1: So we need migrants. We need immigration, but we need 572 00:29:22,960 --> 00:29:25,200 Speaker 1: good We need good immigrants, right, We need people who 573 00:29:25,240 --> 00:29:27,960 Speaker 1: are educated and trained to come in, and so we do. 574 00:29:28,160 --> 00:29:30,840 Speaker 1: The United States is obviously built off immigrants. We have 575 00:29:30,960 --> 00:29:32,840 Speaker 1: the you know, we have more immigrants in the United 576 00:29:32,840 --> 00:29:34,920 Speaker 1: States than any other nation in the world. But then 577 00:29:34,960 --> 00:29:37,520 Speaker 1: we have illegal immigrants. And these are ones who come 578 00:29:37,560 --> 00:29:39,600 Speaker 1: in illegally. They cut the line, they don't go through 579 00:29:39,600 --> 00:29:45,000 Speaker 1: the proper channels and process. And this is a big 580 00:29:45,000 --> 00:29:48,160 Speaker 1: sticking point. Now I could be all for having open 581 00:29:48,200 --> 00:29:50,680 Speaker 1: borders and just let everybody come in if we weren't 582 00:29:50,720 --> 00:29:53,680 Speaker 1: in a welfare state. But the problem is that we are, 583 00:29:54,480 --> 00:29:56,800 Speaker 1: and so we don't just let them come in, but 584 00:29:56,880 --> 00:29:59,200 Speaker 1: we provide them with all the money they need and 585 00:29:59,280 --> 00:30:02,080 Speaker 1: driver's license and voting and social Security that everyone else 586 00:30:02,120 --> 00:30:04,000 Speaker 1: is paid into they did and all these different things, 587 00:30:04,040 --> 00:30:07,160 Speaker 1: and that causes a massive problem. Now you've been hearing 588 00:30:07,200 --> 00:30:09,520 Speaker 1: about the open border that we have on the South. 589 00:30:10,200 --> 00:30:13,600 Speaker 1: Trump obviously was trying to close that border, and even 590 00:30:13,640 --> 00:30:17,680 Speaker 1: though he never actually got it finished, his aggressive stance 591 00:30:17,800 --> 00:30:20,840 Speaker 1: to the border actually did a lot to deter people 592 00:30:20,920 --> 00:30:23,320 Speaker 1: from coming. As a matter of fact, during his presidency, 593 00:30:23,640 --> 00:30:25,920 Speaker 1: a lot of people at the time that had been 594 00:30:25,960 --> 00:30:29,240 Speaker 1: interviewed had said, why would we even bother going there, 595 00:30:29,320 --> 00:30:30,920 Speaker 1: We're just going to be kicked out. There's nothing there 596 00:30:30,920 --> 00:30:34,280 Speaker 1: for us when we get there, and so that worked 597 00:30:34,280 --> 00:30:36,680 Speaker 1: to deter people. But what we see now with the 598 00:30:36,760 --> 00:30:39,720 Speaker 1: border policy is like an open invitation for everybody to 599 00:30:39,800 --> 00:30:42,320 Speaker 1: come in. And of course this is led by the 600 00:30:42,360 --> 00:30:46,920 Speaker 1: Democrats and the Biden administration with this policy, and while 601 00:30:46,960 --> 00:30:49,280 Speaker 1: the people that are affected by this, specifically on the 602 00:30:49,280 --> 00:30:53,200 Speaker 1: border Arizona, Texas, etc. Have been panicking over this we've 603 00:30:53,200 --> 00:30:57,840 Speaker 1: seen millions of people coming over across the border. Some 604 00:30:58,800 --> 00:31:00,720 Speaker 1: people have decided to take steps into their own hands 605 00:31:00,720 --> 00:31:03,680 Speaker 1: and start to move these illegal immigrants into other areas, 606 00:31:04,240 --> 00:31:07,800 Speaker 1: one of which is specifically in New York City. Now, 607 00:31:07,920 --> 00:31:09,840 Speaker 1: it was sort of a little bit of irony this 608 00:31:09,880 --> 00:31:13,080 Speaker 1: week when we saw the mayor of New York, Mayor 609 00:31:13,240 --> 00:31:20,960 Speaker 1: Eric Adams, hold a press conference talking about this exact problem. 610 00:31:21,000 --> 00:31:24,320 Speaker 1: To his I have a video clip here, I was 611 00:31:24,360 --> 00:31:28,480 Speaker 1: going to play it here, where'd it go? But basically 612 00:31:28,560 --> 00:31:31,880 Speaker 1: Eric Adams was talking and he said, quote that this 613 00:31:32,080 --> 00:31:36,400 Speaker 1: issue will destroy New York City. He said that they're 614 00:31:36,400 --> 00:31:41,200 Speaker 1: getting ten thousand migrants per month and there's no stopping it. 615 00:31:41,240 --> 00:31:43,320 Speaker 1: There's no end in sight, which I thought was pretty 616 00:31:43,320 --> 00:31:45,960 Speaker 1: interesting that he would say that, here we go, here's 617 00:31:46,000 --> 00:31:48,480 Speaker 1: the clip, let me give it, let me get it 618 00:31:48,520 --> 00:31:48,960 Speaker 1: to play. 619 00:31:48,760 --> 00:31:50,959 Speaker 2: Here full support, and let me tell you something New 620 00:31:51,000 --> 00:31:55,880 Speaker 2: York is. Never in my life have I had a 621 00:31:55,920 --> 00:32:00,040 Speaker 2: problem that I did not see and ended too. I 622 00:32:00,080 --> 00:32:01,080 Speaker 2: don't see an ending to this. 623 00:32:02,760 --> 00:32:04,320 Speaker 1: Never in his life has he had a problem that 624 00:32:04,360 --> 00:32:07,280 Speaker 1: he didn't see an ending to. Oh, you mean like 625 00:32:07,360 --> 00:32:11,920 Speaker 1: closing the border. I mean, come on, you can't see 626 00:32:11,960 --> 00:32:14,400 Speaker 1: an ending to it. How about not giving them all 627 00:32:14,400 --> 00:32:16,960 Speaker 1: the free stuff so they stopped coming. There might be 628 00:32:17,000 --> 00:32:18,560 Speaker 1: something there. Let's hear a little bit more. 629 00:32:19,640 --> 00:32:24,240 Speaker 2: I don't see an ending to this. This issue will 630 00:32:24,280 --> 00:32:29,600 Speaker 2: destroy New York City. Destroy New York City. We get 631 00:32:29,600 --> 00:32:36,080 Speaker 2: in ten thousand migrants a month. One time we were 632 00:32:36,200 --> 00:32:40,520 Speaker 2: just in Venezuela. Now we get in Ecuador. Now we 633 00:32:40,520 --> 00:32:45,320 Speaker 2: can Russia speaking coming through Mexico. Now we get Western Africa. 634 00:32:45,680 --> 00:32:47,960 Speaker 2: Now we get people from all over the globe that 635 00:32:48,080 --> 00:32:51,160 Speaker 2: made their minds up that they're going to come through 636 00:32:51,600 --> 00:32:54,120 Speaker 2: the southern part of the border and come into New 637 00:32:54,200 --> 00:32:54,760 Speaker 2: York City. 638 00:32:57,400 --> 00:32:59,920 Speaker 1: So let's break that down a second. So we did 639 00:33:00,000 --> 00:33:03,160 Speaker 1: I've had people from South America, like Venezuela, but now 640 00:33:03,200 --> 00:33:07,360 Speaker 1: we have Russians, Ukrainians. Now we have people from West 641 00:33:07,400 --> 00:33:10,680 Speaker 1: Africa coming And what do you say through the southern 642 00:33:10,760 --> 00:33:12,720 Speaker 1: border because they've made up their mind they want to 643 00:33:12,720 --> 00:33:15,120 Speaker 1: come to America, so they just unpack that. So they're 644 00:33:15,160 --> 00:33:17,400 Speaker 1: coming through the southern border. Okay, so he can't see 645 00:33:17,400 --> 00:33:20,600 Speaker 1: a way out. Well, we could close the southern border. Now, 646 00:33:20,680 --> 00:33:22,160 Speaker 1: why are all these people from all the world deciding 647 00:33:22,160 --> 00:33:23,880 Speaker 1: and they want to come here. Well, because of the 648 00:33:23,920 --> 00:33:26,960 Speaker 1: things they get when they come here. So you change 649 00:33:26,960 --> 00:33:29,920 Speaker 1: the incentive system, you put a couple of checks and 650 00:33:29,960 --> 00:33:32,800 Speaker 1: gateways in and you solve that problem. Just about a 651 00:33:32,840 --> 00:33:35,840 Speaker 1: month ago, it was actually July, so a couple months ago, 652 00:33:36,600 --> 00:33:39,160 Speaker 1: I flew out to Spain to give a talk at 653 00:33:39,200 --> 00:33:42,960 Speaker 1: a Mastermind event there, and when I was flying back, 654 00:33:43,120 --> 00:33:48,400 Speaker 1: I was flying from Madrid to back to Los Angeles 655 00:33:48,600 --> 00:33:52,400 Speaker 1: and I had to go through El Salvador and on 656 00:33:52,480 --> 00:33:57,960 Speaker 1: my plane were I don't know, twenty or thirty African 657 00:33:58,280 --> 00:34:01,840 Speaker 1: people getting on the plane and they were all like, 658 00:34:01,960 --> 00:34:05,720 Speaker 1: dressed pretty nice, and they were all, you know, all 659 00:34:05,720 --> 00:34:07,680 Speaker 1: getting at the same time. And I've been to El 660 00:34:07,720 --> 00:34:11,399 Speaker 1: Salvador many times, mostly I go there for surfing. There's 661 00:34:11,400 --> 00:34:12,960 Speaker 1: not a lot in l savad Or. It's certainly not 662 00:34:13,000 --> 00:34:15,319 Speaker 1: a big debt tourist destination for most people, and it's 663 00:34:15,320 --> 00:34:19,759 Speaker 1: certainly not a place where twenty or thirty twenty year 664 00:34:19,760 --> 00:34:25,120 Speaker 1: old African males dressed nicely would go. So I start 665 00:34:25,160 --> 00:34:27,120 Speaker 1: thinking about this, and I tried to talk to a 666 00:34:27,160 --> 00:34:29,360 Speaker 1: couple of them. Most of them didn't speak any English, 667 00:34:29,640 --> 00:34:32,880 Speaker 1: and as it turns out, most of them were flying 668 00:34:33,640 --> 00:34:35,200 Speaker 1: into Al Savagor because of the place they could go 669 00:34:35,280 --> 00:34:38,080 Speaker 1: to for Madrid, and from El salvad Or they would 670 00:34:38,080 --> 00:34:42,280 Speaker 1: start to make their way up into the United States. Now, 671 00:34:42,400 --> 00:34:45,480 Speaker 1: who paid for these people, you know, dressed nice and 672 00:34:45,560 --> 00:34:47,479 Speaker 1: who paid for their plane tickets to get them there? 673 00:34:47,719 --> 00:34:50,400 Speaker 1: I don't know. That's a different story, but it certainly 674 00:34:50,400 --> 00:34:54,040 Speaker 1: seemed pretty organized to me. But this is what happens 675 00:34:54,120 --> 00:34:56,880 Speaker 1: when you have this. So for Eric Adam's statement, I 676 00:34:56,920 --> 00:34:59,279 Speaker 1: don't see an end in sight. Pretty interesting. Now, let's 677 00:34:59,320 --> 00:35:01,600 Speaker 1: break down some numbers we see. In the fiscal year 678 00:35:01,640 --> 00:35:05,440 Speaker 1: twenty twenty two, border patrol agents apprehended a record breaking 679 00:35:05,440 --> 00:35:08,839 Speaker 1: two point three million immigrants at the southern border. Now 680 00:35:08,840 --> 00:35:13,200 Speaker 1: this is apprehended, Okay, this number includes people that they got. 681 00:35:13,640 --> 00:35:16,080 Speaker 1: It doesn't include the people that they didn't, which is 682 00:35:16,120 --> 00:35:18,879 Speaker 1: the majority of people. We don't have a firm number 683 00:35:18,880 --> 00:35:21,160 Speaker 1: on that. We can see that the number of undocumented 684 00:35:21,200 --> 00:35:23,879 Speaker 1: immigrants crossings at the southwest border for the year twenty 685 00:35:23,880 --> 00:35:28,399 Speaker 1: twenty two topped almost three million people in one year, 686 00:35:29,160 --> 00:35:31,879 Speaker 1: which broke the previous annual record by more than one 687 00:35:32,200 --> 00:35:34,640 Speaker 1: million people. So this is a big it's a big problem, 688 00:35:34,719 --> 00:35:39,239 Speaker 1: it's a big epidemic. It's a big conversation, and it's 689 00:35:39,400 --> 00:35:44,080 Speaker 1: one that doesn't have an easy answer. But again, as 690 00:35:44,080 --> 00:35:46,239 Speaker 1: I said, the irony of making your bed now you 691 00:35:46,280 --> 00:35:48,759 Speaker 1: have to lay in it. The Democratic parties that want 692 00:35:48,800 --> 00:35:50,759 Speaker 1: this to happen. And here Eric Adams is having to 693 00:35:50,760 --> 00:35:52,879 Speaker 1: deal with this and he can't see an end in sight, 694 00:35:53,640 --> 00:35:55,480 Speaker 1: but when it's sitting right in front of your face. 695 00:35:55,480 --> 00:35:56,920 Speaker 1: And this goes back to what we talked about in 696 00:35:56,920 --> 00:35:59,640 Speaker 1: the very first episode, which is the law of unintended consequences. 697 00:36:01,280 --> 00:36:04,520 Speaker 1: You have to be able to think through first, second, third, fourth, 698 00:36:04,640 --> 00:36:07,640 Speaker 1: fifth order effects and this affects all of us. Right. 699 00:36:07,640 --> 00:36:10,840 Speaker 1: We have people all in this world, in this country 700 00:36:10,880 --> 00:36:14,080 Speaker 1: who don't think through the second, third, fourth, fifth order. 701 00:36:14,120 --> 00:36:16,480 Speaker 1: They don't think through the consequence of these things, and 702 00:36:16,600 --> 00:36:19,279 Speaker 1: unfortunately they're helping vote, which is why it's important for 703 00:36:19,360 --> 00:36:21,360 Speaker 1: us to continue to talk about these things, continue to 704 00:36:21,400 --> 00:36:23,239 Speaker 1: spread these brush fires to the minds of men. As 705 00:36:23,280 --> 00:36:27,080 Speaker 1: Samuel Adams said, take these conversations, discussing with your friends' family, 706 00:36:27,239 --> 00:36:30,000 Speaker 1: co workers, and we can change the collective shift anyway. 707 00:36:30,040 --> 00:36:31,840 Speaker 1: That's what we got for today. Thanks so much for listening. 708 00:36:32,040 --> 00:36:33,759 Speaker 1: If you're just tune your listen to the Mark Mas Show, 709 00:36:34,000 --> 00:36:35,680 Speaker 1: and that's what I got. I'll talk to you next time,