1 00:00:00,160 --> 00:00:02,920 Speaker 1: Hello, and welcome to another episode of the Mark Maas Show, 2 00:00:03,040 --> 00:00:06,680 Speaker 1: where we're always talking about the decentralized revolution deglobalization. 3 00:00:06,800 --> 00:00:08,920 Speaker 2: If you don't know what that means. The world is. 4 00:00:08,960 --> 00:00:11,560 Speaker 1: Changing and we can see it changing everywhere. And I 5 00:00:11,680 --> 00:00:13,880 Speaker 1: have a big show for you today so you can 6 00:00:14,040 --> 00:00:17,239 Speaker 1: understand what's going on and more importantly, where we're going. 7 00:00:17,760 --> 00:00:22,320 Speaker 1: And I want to talk about something that every government, 8 00:00:22,400 --> 00:00:26,760 Speaker 1: every empire makes a mistake, they make at the end 9 00:00:26,880 --> 00:00:28,960 Speaker 1: every single time. I want to break this down so 10 00:00:29,040 --> 00:00:32,279 Speaker 1: you know what's coming, the dangers of this, and of 11 00:00:32,280 --> 00:00:34,400 Speaker 1: course what we can do to counteract this. And so 12 00:00:34,440 --> 00:00:38,440 Speaker 1: I want to talk about Biden's price controls backfiring and 13 00:00:38,520 --> 00:00:41,400 Speaker 1: why they always fail. So we're going to cover the 14 00:00:41,400 --> 00:00:44,120 Speaker 1: Biden administration's latest attempt at price controls. We're going to 15 00:00:44,120 --> 00:00:47,000 Speaker 1: look back at failed attempts by governments to set price controls. 16 00:00:47,960 --> 00:00:50,440 Speaker 1: I want to dive down deep into a moment in 17 00:00:50,520 --> 00:00:53,520 Speaker 1: recent history when another country attempted the very same price 18 00:00:53,560 --> 00:00:57,520 Speaker 1: controls that the Biden administration is imposing. And then I'm 19 00:00:57,560 --> 00:01:01,560 Speaker 1: going to help set expectations in our current market environment 20 00:01:01,800 --> 00:01:04,000 Speaker 1: to let you know what I think is about to 21 00:01:04,000 --> 00:01:05,240 Speaker 1: happen and what we're gonna do about it. So We've 22 00:01:05,240 --> 00:01:09,440 Speaker 1: got a lot to cover in this episode. I'm excited 23 00:01:09,440 --> 00:01:11,240 Speaker 1: about this one, so make sure you. 24 00:01:11,200 --> 00:01:12,760 Speaker 2: Tune in the whole time. Now, if you have to 25 00:01:12,880 --> 00:01:14,440 Speaker 2: leave early, don't worry. I got your back. 26 00:01:14,560 --> 00:01:16,880 Speaker 1: Just check me out on the podcast. Just search the 27 00:01:16,920 --> 00:01:19,880 Speaker 1: Mark Mall Show on your favorite podcast player, or you 28 00:01:19,920 --> 00:01:23,000 Speaker 1: can go to YouTube and go to the Market Disruptors 29 00:01:23,040 --> 00:01:25,000 Speaker 1: YouTube channel where you can watch me and listen to 30 00:01:25,040 --> 00:01:27,759 Speaker 1: me at the same time. Now, one thing, just real quick, please, 31 00:01:27,760 --> 00:01:29,640 Speaker 1: if I can ask a small favor if you're listening 32 00:01:29,720 --> 00:01:32,360 Speaker 1: on the podcast app, if you can just like and 33 00:01:32,440 --> 00:01:34,480 Speaker 1: review the show, that means the world to me. 34 00:01:34,680 --> 00:01:35,480 Speaker 2: More people would. 35 00:01:35,280 --> 00:01:37,960 Speaker 1: See the show and I'd be much appreciated there. All right, 36 00:01:38,000 --> 00:01:42,399 Speaker 1: So we're talking about, like I said, the inevitable, and 37 00:01:42,440 --> 00:01:48,080 Speaker 1: it's inevitable because all throughout history, every government basically runs 38 00:01:48,160 --> 00:01:52,080 Speaker 1: the same pattern. It's been documented a couple of times. 39 00:01:52,880 --> 00:01:58,400 Speaker 1: There's uh, there's research on the average empire and the 40 00:01:58,520 --> 00:02:02,400 Speaker 1: average democracy, which both interestingly run about a two hundred 41 00:02:02,440 --> 00:02:06,360 Speaker 1: and fifty year time span. On the empires, they run 42 00:02:06,400 --> 00:02:09,760 Speaker 1: it through like a six cycles. Democracy runs at eight cycles. 43 00:02:10,200 --> 00:02:12,360 Speaker 1: But they're both about the same and it's something sort 44 00:02:12,360 --> 00:02:15,520 Speaker 1: of like in the first stage, you have the eruption 45 00:02:15,800 --> 00:02:19,320 Speaker 1: or the frenzy, and so you know, after a revolution 46 00:02:19,800 --> 00:02:23,200 Speaker 1: comes this eruption, this frenzy. There's this new energy, this excitement. 47 00:02:23,200 --> 00:02:27,280 Speaker 1: There's this birth of this new country or civilization or 48 00:02:27,360 --> 00:02:29,760 Speaker 1: whatever it is at the time. So you have that 49 00:02:30,280 --> 00:02:34,639 Speaker 1: next after that eruption, that frenzy, that excitement happens, then 50 00:02:34,680 --> 00:02:37,000 Speaker 1: we start to have the growth. So then we start 51 00:02:37,040 --> 00:02:39,320 Speaker 1: to have sort of the commercial growth happening there. So 52 00:02:39,320 --> 00:02:42,720 Speaker 1: we're starting to see businesses sprouting up, growing, We're starting 53 00:02:42,720 --> 00:02:46,400 Speaker 1: to see productivity things like that. Then that leads to 54 00:02:46,919 --> 00:02:50,560 Speaker 1: wealth and influence because now we're creating, we're producing, we're 55 00:02:50,560 --> 00:02:54,880 Speaker 1: providing value, we're exchanging, we have specialization of trade, and 56 00:02:54,919 --> 00:02:59,560 Speaker 1: we have prosperity. But after that then we go to 57 00:02:59,800 --> 00:03:04,200 Speaker 1: the age of like intellectualism. And so after you've taken 58 00:03:04,240 --> 00:03:07,200 Speaker 1: care of your base needs, you have the money, you 59 00:03:07,320 --> 00:03:11,240 Speaker 1: turn towards other things that are non economically driven. And 60 00:03:11,280 --> 00:03:14,680 Speaker 1: so those typically go into like I said, you know, education, 61 00:03:15,360 --> 00:03:17,840 Speaker 1: arts and things like that. And so we can certainly 62 00:03:18,280 --> 00:03:20,320 Speaker 1: if you're listening along, if you're playing along, you can 63 00:03:20,600 --> 00:03:21,880 Speaker 1: just see how the United. 64 00:03:21,680 --> 00:03:23,200 Speaker 2: States has kind of fallen through this. 65 00:03:23,560 --> 00:03:25,480 Speaker 1: And so then you kind of this age of intellectualism 66 00:03:25,560 --> 00:03:29,400 Speaker 1: and this rise of these this technocrossy, which is, you know, 67 00:03:29,440 --> 00:03:31,040 Speaker 1: these experts that want to tell you what to do. 68 00:03:31,760 --> 00:03:35,240 Speaker 1: And then we go into what's known as the age 69 00:03:35,400 --> 00:03:42,880 Speaker 1: of like speculation and sort of waste and gambling. Right, 70 00:03:42,920 --> 00:03:46,000 Speaker 1: and so when you saw last year, about two years ago, 71 00:03:46,120 --> 00:03:49,280 Speaker 1: there was you know, sixty eight million dollars for a 72 00:03:49,360 --> 00:03:52,040 Speaker 1: JPEG piece of art from people, or there was an 73 00:03:52,120 --> 00:03:56,040 Speaker 1: eighteen million dollar piece of invisible art. I don't even 74 00:03:56,080 --> 00:03:57,760 Speaker 1: know if they got they got delivery of it or not. 75 00:03:57,800 --> 00:03:59,600 Speaker 1: Maybe they got scammed because it's invisible. 76 00:03:59,600 --> 00:04:02,760 Speaker 2: They don't know. You know, you see you know, three hundred. 77 00:04:02,520 --> 00:04:05,520 Speaker 1: Five hundred million dollar yachts, five hundred million dollars houses 78 00:04:05,560 --> 00:04:08,400 Speaker 1: and condos. I mean, it's insane we have that. Then 79 00:04:08,480 --> 00:04:12,600 Speaker 1: we go into this age of dependence where people then 80 00:04:12,720 --> 00:04:16,960 Speaker 1: become dependent on the government because they just can't afford 81 00:04:17,000 --> 00:04:19,640 Speaker 1: to live on their own for whatever reason. Again, this 82 00:04:19,680 --> 00:04:21,440 Speaker 1: traces back through all of history. You can see in 83 00:04:21,560 --> 00:04:24,200 Speaker 1: the Roman Empire we had like the bread and circuses 84 00:04:24,240 --> 00:04:25,520 Speaker 1: where the government had to kind of take care of 85 00:04:25,520 --> 00:04:27,840 Speaker 1: the people so they wouldn't revolt. Of course you see this, 86 00:04:28,360 --> 00:04:31,040 Speaker 1: yes in the United States today, where more and more 87 00:04:31,080 --> 00:04:32,760 Speaker 1: people are depending on the government. As a matter of fact, 88 00:04:32,760 --> 00:04:35,720 Speaker 1: we have more people dependent on the government today for 89 00:04:36,240 --> 00:04:38,920 Speaker 1: housing and food than we did during the Great Depression, 90 00:04:40,120 --> 00:04:41,839 Speaker 1: and so we have this high level dependence. You know, 91 00:04:41,880 --> 00:04:44,839 Speaker 1: all this talk today of UBI universal basic income that 92 00:04:44,880 --> 00:04:45,440 Speaker 1: we need to produce. 93 00:04:46,160 --> 00:04:49,920 Speaker 2: And after dependence comes. 94 00:04:51,000 --> 00:04:56,320 Speaker 1: Well, like slavery, after you become so dependent you can't leave. 95 00:04:56,720 --> 00:04:59,280 Speaker 1: Then comes what they actually call bondage. And then you 96 00:04:59,360 --> 00:05:01,680 Speaker 1: have this period of bondage, which is now the government 97 00:05:01,720 --> 00:05:04,440 Speaker 1: has total control because you've given them everything, they have 98 00:05:04,480 --> 00:05:08,839 Speaker 1: total control everything. And after bondage, we finally then have 99 00:05:09,000 --> 00:05:12,160 Speaker 1: revolution again. All right, So this has been documented very 100 00:05:12,160 --> 00:05:15,239 Speaker 1: well through thousands of years of history, and it typically 101 00:05:15,240 --> 00:05:16,760 Speaker 1: follow about a twohun fifty yar time frame. Now if 102 00:05:16,760 --> 00:05:19,400 Speaker 1: you're playing along, Yes, the United States was founded about 103 00:05:19,400 --> 00:05:21,599 Speaker 1: two hundred and fifty years ago, and not just the United. 104 00:05:21,400 --> 00:05:23,279 Speaker 2: States, but really even sort of Europe. 105 00:05:23,320 --> 00:05:25,240 Speaker 1: I mean we had the French Revolution as well about 106 00:05:25,240 --> 00:05:27,240 Speaker 1: two hund fifty years ago, and so we're starting to 107 00:05:27,240 --> 00:05:30,560 Speaker 1: see this developed world starting to go down this path. 108 00:05:30,600 --> 00:05:30,800 Speaker 2: Now. 109 00:05:30,920 --> 00:05:32,919 Speaker 1: One of the things that's also part of this is 110 00:05:32,960 --> 00:05:35,680 Speaker 1: as we kind of go from this period of abundance 111 00:05:35,720 --> 00:05:38,920 Speaker 1: to dependence and then into bondage. Is one of the 112 00:05:39,040 --> 00:05:42,200 Speaker 1: last things that the governments do in this bondage period, 113 00:05:42,279 --> 00:05:46,120 Speaker 1: which is having control of everything, is trying to control 114 00:05:46,200 --> 00:05:47,360 Speaker 1: the flow of money or what. 115 00:05:47,320 --> 00:05:48,640 Speaker 2: We call capital controls. 116 00:05:48,920 --> 00:05:51,760 Speaker 1: So they want to control how much money is moving 117 00:05:51,960 --> 00:05:53,880 Speaker 1: in the economy, moving between people. 118 00:05:54,160 --> 00:05:56,800 Speaker 2: More specifically, though, they want to control money moving in 119 00:05:57,279 --> 00:05:59,000 Speaker 2: and out of the economy. 120 00:05:59,160 --> 00:06:01,039 Speaker 1: So you can look at China for example, they don't 121 00:06:01,040 --> 00:06:03,560 Speaker 1: have open capital markets. As a matter of fact, most 122 00:06:03,560 --> 00:06:06,440 Speaker 1: countries in the world don't. You can hear obviously many 123 00:06:06,480 --> 00:06:08,280 Speaker 1: stories and maybe you know them if you've been a 124 00:06:08,279 --> 00:06:13,440 Speaker 1: migrant or immigrant. You know people escaping Russia or Iran 125 00:06:13,720 --> 00:06:17,360 Speaker 1: or South Africa and having to basically leave all their 126 00:06:17,400 --> 00:06:21,560 Speaker 1: assets with them. I've done an interview with yan Jan Pittzer. 127 00:06:21,600 --> 00:06:25,400 Speaker 1: He's the co founder of swan Bitcoin. My good friends 128 00:06:25,400 --> 00:06:26,839 Speaker 1: at swan biccoin. If you want to pick up bitcoin, 129 00:06:26,920 --> 00:06:29,600 Speaker 1: go check them out. But he talks about how his 130 00:06:29,680 --> 00:06:32,920 Speaker 1: family had to leave Russia and when they had to leave, 131 00:06:33,040 --> 00:06:35,719 Speaker 1: I want to say, they were only allowed to bring 132 00:06:35,839 --> 00:06:37,440 Speaker 1: like four hundred dollars was like. 133 00:06:37,440 --> 00:06:39,240 Speaker 2: The max they could get out of their bank account. 134 00:06:40,240 --> 00:06:42,240 Speaker 1: Don't fact fact check me on that it was something 135 00:06:42,279 --> 00:06:43,680 Speaker 1: to that effect, but they could only bring a little 136 00:06:43,680 --> 00:06:45,680 Speaker 1: bit of money. Growing up as a kid, one of 137 00:06:45,680 --> 00:06:48,200 Speaker 1: my best friends family had come from South Africa, and 138 00:06:48,240 --> 00:06:50,560 Speaker 1: coming from South Africa, they had to leave their money 139 00:06:50,560 --> 00:06:51,479 Speaker 1: in South Africa too. 140 00:06:52,160 --> 00:06:52,680 Speaker 2: I did an. 141 00:06:52,680 --> 00:06:57,280 Speaker 1: Interview about two weeks ago with Rand Owner on a 142 00:06:57,279 --> 00:06:59,880 Speaker 1: show called Crypto Banter, and he was talking about how 143 00:07:00,000 --> 00:07:01,920 Speaker 1: his family he grew up in South Africa, but his 144 00:07:01,960 --> 00:07:05,520 Speaker 1: family had to leave Iran and when they left, they 145 00:07:05,520 --> 00:07:08,479 Speaker 1: had to flee for their lives. They were pretty affluent 146 00:07:08,520 --> 00:07:11,920 Speaker 1: there and they had to they had to flee for 147 00:07:11,960 --> 00:07:13,600 Speaker 1: their lives. And so they got all the gold that 148 00:07:13,600 --> 00:07:15,960 Speaker 1: they owned and they melted it down and it went 149 00:07:16,000 --> 00:07:19,800 Speaker 1: into like a barrel, and they went to the evacuation 150 00:07:19,880 --> 00:07:22,040 Speaker 1: site to get on the plane to fly out. And 151 00:07:22,240 --> 00:07:24,160 Speaker 1: they get to go to the point to get on 152 00:07:24,160 --> 00:07:26,640 Speaker 1: the plane and the guy you know loading him says, 153 00:07:26,680 --> 00:07:29,080 Speaker 1: hang on a second, like, you can't bring that barrel 154 00:07:29,120 --> 00:07:31,720 Speaker 1: of gold. That's not going to go on the airplane. 155 00:07:32,320 --> 00:07:34,440 Speaker 1: You got two choices. You can either leave it here 156 00:07:34,600 --> 00:07:36,720 Speaker 1: or you can stay here. 157 00:07:37,000 --> 00:07:38,600 Speaker 2: And so they left it there. They had to go. 158 00:07:38,640 --> 00:07:40,840 Speaker 1: They d going to South Africa fleeing for their lives 159 00:07:40,840 --> 00:07:44,480 Speaker 1: where they lived six years in tense. But the point 160 00:07:44,600 --> 00:07:47,840 Speaker 1: is is that nations will always control the flow of capital, 161 00:07:49,120 --> 00:07:51,000 Speaker 1: and like I said, and how those thing interact and 162 00:07:51,120 --> 00:07:53,800 Speaker 1: what we're talking about today is a part of. 163 00:07:53,720 --> 00:07:54,960 Speaker 2: This capital controls. 164 00:07:55,000 --> 00:07:58,440 Speaker 1: But it's specifically about price controls, all right, So that's 165 00:07:58,640 --> 00:08:01,600 Speaker 1: specifically what we're talking about, the price control aspect of things. 166 00:08:02,440 --> 00:08:05,240 Speaker 1: And you can see how it's always there. Now, I 167 00:08:05,280 --> 00:08:07,280 Speaker 1: want to tell you a story first so you can 168 00:08:07,320 --> 00:08:11,560 Speaker 1: start to understand how all of these things come about, right, 169 00:08:11,600 --> 00:08:15,360 Speaker 1: And really it's all summed up in one mental model, 170 00:08:15,400 --> 00:08:20,160 Speaker 1: and that is the mental model of unintended consequences. Now, 171 00:08:20,240 --> 00:08:23,280 Speaker 1: unintended consequences are when you do one thing trying to 172 00:08:23,280 --> 00:08:26,880 Speaker 1: get one result or affect one outcome, but you get 173 00:08:26,920 --> 00:08:28,120 Speaker 1: a whole bunch. 174 00:08:27,880 --> 00:08:29,320 Speaker 2: Of other variables that popped up. 175 00:08:29,920 --> 00:08:33,080 Speaker 1: It's sort of like if you watch mainstream TV, which 176 00:08:33,120 --> 00:08:35,080 Speaker 1: probably none of you guys are, but if you watch 177 00:08:35,080 --> 00:08:38,080 Speaker 1: mainstream TV's it's sort of like this dumpster fire of 178 00:08:38,320 --> 00:08:43,000 Speaker 1: pharmaceutical commercials where especially if you're like watching ESPN or something, 179 00:08:43,040 --> 00:08:45,720 Speaker 1: it's just like one like prescription med after another. It 180 00:08:45,760 --> 00:08:49,520 Speaker 1: seems like, and at the end they tell you all 181 00:08:49,559 --> 00:08:52,760 Speaker 1: the side effects that they could have. So you have heartburn, 182 00:08:52,800 --> 00:08:55,040 Speaker 1: you could take this pill for heartburn, but you know 183 00:08:55,120 --> 00:08:57,480 Speaker 1: it might give you headaches and fevers and sweats and 184 00:08:57,640 --> 00:09:00,680 Speaker 1: you might die, right, And so those are unin tending consequences. 185 00:09:00,679 --> 00:09:03,840 Speaker 1: They're trying to fix one thing, like heartburn, but instead 186 00:09:03,880 --> 00:09:05,520 Speaker 1: they have to warn you that all. 187 00:09:05,360 --> 00:09:06,439 Speaker 2: These other things could happen. 188 00:09:07,040 --> 00:09:09,400 Speaker 1: But what was interesting about that is, if you remember, 189 00:09:10,040 --> 00:09:13,120 Speaker 1: I'm sure you do, during the pandemic, you weren't allowed 190 00:09:13,160 --> 00:09:14,760 Speaker 1: to talk about the vaccine at all. 191 00:09:14,800 --> 00:09:19,240 Speaker 2: You could never talk that there could even potentially ever 192 00:09:19,360 --> 00:09:22,200 Speaker 2: be one side effect of it. Never one. 193 00:09:22,800 --> 00:09:25,240 Speaker 1: The reason why this is important is because in a 194 00:09:25,360 --> 00:09:28,760 Speaker 1: complex system, when you affect, when you try to change 195 00:09:28,760 --> 00:09:30,520 Speaker 1: one thing, you affect others. Now, I'm going to tell 196 00:09:30,520 --> 00:09:31,880 Speaker 1: you a story about how this works, and I'm going 197 00:09:31,880 --> 00:09:34,160 Speaker 1: to talk about price controls, capital controls, and what we're 198 00:09:34,200 --> 00:09:35,880 Speaker 1: expecting and what we can do about them. But I 199 00:09:35,880 --> 00:09:37,600 Speaker 1: gotta take a quick break. If you're just tune in, 200 00:09:37,600 --> 00:09:40,080 Speaker 1: you're listening to the Mark Mass Show. We're talking about 201 00:09:40,120 --> 00:09:43,120 Speaker 1: how price controls are at the end of every empire 202 00:09:43,360 --> 00:09:45,520 Speaker 1: and democracy, and we're seeing the same things and what 203 00:09:45,559 --> 00:09:46,880 Speaker 1: to do about it. I'll be back with more a minute. 204 00:09:46,880 --> 00:09:48,800 Speaker 1: Don't go away, all right, Welcome back. If you just 205 00:09:48,840 --> 00:09:50,800 Speaker 1: tune in, you're listening to the Mark Maas Show. We're 206 00:09:50,840 --> 00:09:55,280 Speaker 1: talking about price controls, what happens at the end of 207 00:09:55,280 --> 00:09:57,680 Speaker 1: an empire, at the end of a country, capital controls, 208 00:09:57,679 --> 00:10:02,360 Speaker 1: price controls, and how the Biden administration price controls are backfiring, 209 00:10:03,480 --> 00:10:05,680 Speaker 1: why they always fail, and what we can do about them. 210 00:10:05,800 --> 00:10:07,360 Speaker 2: I want to just tell you a story real quick. 211 00:10:08,200 --> 00:10:11,080 Speaker 1: Like I said, it was about the law of unintended consequences, 212 00:10:11,160 --> 00:10:13,559 Speaker 1: and so when we try to change one thing and 213 00:10:13,600 --> 00:10:15,760 Speaker 1: it has all these other outcomes and effects that we 214 00:10:15,840 --> 00:10:16,880 Speaker 1: didn't intend on. 215 00:10:17,000 --> 00:10:19,960 Speaker 2: So there's a story. It's called the cobra effect. 216 00:10:20,600 --> 00:10:23,760 Speaker 1: Now, the cobra effect is a story from India, which 217 00:10:23,920 --> 00:10:26,800 Speaker 1: has a problem with king cobra snakes and as you're 218 00:10:26,800 --> 00:10:31,000 Speaker 1: probably aware, king koba snakes are very poisonous. Now, there 219 00:10:31,040 --> 00:10:34,160 Speaker 1: was a problem and that there was too many of 220 00:10:34,160 --> 00:10:37,280 Speaker 1: these king cobras and they were affecting the population. It 221 00:10:37,320 --> 00:10:39,640 Speaker 1: wasn't safe, people were dying, etc. Things like that were happening. 222 00:10:39,720 --> 00:10:42,559 Speaker 1: So the Indian government decided they would come up with 223 00:10:42,600 --> 00:10:45,640 Speaker 1: a plan the plan would be is that what we'll 224 00:10:45,640 --> 00:10:48,679 Speaker 1: do is we'll incentivize and it always starts with incentives. 225 00:10:48,960 --> 00:10:52,640 Speaker 1: Will incentivize people to go kill these cobra snakes and 226 00:10:52,679 --> 00:10:54,160 Speaker 1: bring them to us, and for every snake they turn 227 00:10:54,200 --> 00:10:56,360 Speaker 1: in that we'll pay them for them. 228 00:10:56,600 --> 00:10:57,160 Speaker 2: And so they did. 229 00:10:57,360 --> 00:10:59,520 Speaker 1: And so people started, you know, going and killing snakes 230 00:10:59,559 --> 00:11:02,040 Speaker 1: and bring them. And some people that were a little 231 00:11:02,040 --> 00:11:04,520 Speaker 1: bit smarter and more ambitious than others decided, hey, here's 232 00:11:04,559 --> 00:11:07,280 Speaker 1: a good idea. What we'll do is we'll start raising 233 00:11:07,320 --> 00:11:09,320 Speaker 1: the snakes on our own. We'll start breeding them. So 234 00:11:09,360 --> 00:11:11,760 Speaker 1: we'll just start set up our cages and we'll raise them. 235 00:11:11,800 --> 00:11:14,040 Speaker 1: And they did, and they started raising them by the 236 00:11:14,080 --> 00:11:16,440 Speaker 1: dozens and the hundreds or however many they were, and 237 00:11:16,480 --> 00:11:19,200 Speaker 1: then they would bring in boxes at a time and 238 00:11:19,320 --> 00:11:21,240 Speaker 1: just dump them on the counter and get paid out 239 00:11:21,240 --> 00:11:23,920 Speaker 1: for it. It didn't take very long for the government 240 00:11:23,960 --> 00:11:27,600 Speaker 1: to realize that this wasn't exactly what they had intended 241 00:11:27,960 --> 00:11:31,320 Speaker 1: to happen, and so they said, hey, we're canceling this 242 00:11:31,360 --> 00:11:32,120 Speaker 1: program altogether. 243 00:11:32,120 --> 00:11:34,080 Speaker 2: We're no longer going to pay you for the king cobras. 244 00:11:34,360 --> 00:11:37,880 Speaker 1: Well, then all these farms, all these people that were 245 00:11:37,920 --> 00:11:39,720 Speaker 1: growing the cobras just to sell them to the government 246 00:11:39,760 --> 00:11:40,760 Speaker 1: are like, well, what the heck are we to do with 247 00:11:40,760 --> 00:11:44,280 Speaker 1: all these snakes? Then the answer was obviously nothing, so 248 00:11:44,320 --> 00:11:47,280 Speaker 1: they let them all go. After the program was ended, 249 00:11:47,480 --> 00:11:50,720 Speaker 1: India ended up with more snakes than they had originally 250 00:11:50,760 --> 00:11:53,160 Speaker 1: had in the beginning. And that is the law of 251 00:11:53,200 --> 00:11:55,760 Speaker 1: on intended consequences. Specifically, when you're working in a complex 252 00:11:55,760 --> 00:11:58,520 Speaker 1: system like a society and you're creating incentives, people are 253 00:11:58,520 --> 00:12:01,400 Speaker 1: always going to optimize for those incentives. 254 00:12:01,679 --> 00:12:03,439 Speaker 2: Now we can see the same thing. 255 00:12:03,400 --> 00:12:07,800 Speaker 1: Happening with price controls because it affects incentives and the 256 00:12:07,880 --> 00:12:11,520 Speaker 1: law of unintended consequences. And so, as I said, we 257 00:12:12,160 --> 00:12:14,880 Speaker 1: know that all throughout history it's always this last stage 258 00:12:14,880 --> 00:12:17,000 Speaker 1: that the government's going to go to is trying to 259 00:12:17,000 --> 00:12:20,120 Speaker 1: do that. Now we know we have dozens of examples 260 00:12:20,160 --> 00:12:21,480 Speaker 1: I want to run through with you, but one of 261 00:12:21,520 --> 00:12:25,480 Speaker 1: them might be, for example, like rent control. Now I 262 00:12:25,520 --> 00:12:28,840 Speaker 1: live in southern California. I've been investing in southern southern 263 00:12:28,840 --> 00:12:31,840 Speaker 1: California real estate for decades. I owned apartment buildings in 264 00:12:31,840 --> 00:12:35,040 Speaker 1: Los Angeles, and Los Angeles has rent control, so I've 265 00:12:35,040 --> 00:12:37,280 Speaker 1: had to deal with this before. Now, basically, what they 266 00:12:37,280 --> 00:12:40,600 Speaker 1: say is that you can't raise your rent anymore. So 267 00:12:40,760 --> 00:12:42,720 Speaker 1: me as an owner of a building, as a landlord, 268 00:12:42,720 --> 00:12:44,720 Speaker 1: I can no longer raise my rent, which on the 269 00:12:44,760 --> 00:12:46,760 Speaker 1: surface sounds pretty good if you think about it only 270 00:12:46,800 --> 00:12:51,200 Speaker 1: from a first order effect. Unfortunately for most well unfortunately 271 00:12:51,240 --> 00:12:53,920 Speaker 1: for us, all of us, and for the world, most 272 00:12:54,000 --> 00:12:58,360 Speaker 1: people only think through first order effects, but didn't think 273 00:12:58,679 --> 00:13:01,520 Speaker 1: through what happens to the second order and the third 274 00:13:01,640 --> 00:13:04,360 Speaker 1: order and the fourth order effects. What we do know 275 00:13:04,679 --> 00:13:08,040 Speaker 1: is that when they have imposed things like rent control, 276 00:13:08,480 --> 00:13:11,559 Speaker 1: what we see is that we actually have a shortage 277 00:13:11,840 --> 00:13:14,880 Speaker 1: of housing. As a matter of fact, every single time 278 00:13:14,960 --> 00:13:18,560 Speaker 1: we see something like price controls, it leads to shortage 279 00:13:18,679 --> 00:13:23,440 Speaker 1: of housing. Now why would that happen, Well, it's pretty simple. 280 00:13:24,440 --> 00:13:27,400 Speaker 1: There's a couple of things. One, if I move into 281 00:13:27,480 --> 00:13:30,280 Speaker 1: this cool apartment and I love my location and it's 282 00:13:30,320 --> 00:13:33,040 Speaker 1: in this trendy area whatever, and I get my rent 283 00:13:33,080 --> 00:13:35,520 Speaker 1: locked in, I no longer have to worry about the 284 00:13:35,559 --> 00:13:38,560 Speaker 1: price of inflation. My rents locked in now. Once I'm 285 00:13:38,640 --> 00:13:40,679 Speaker 1: in there, I don't ever want to let that go. 286 00:13:41,040 --> 00:13:43,200 Speaker 1: As a matter of fact, as we can see after 287 00:13:43,200 --> 00:13:46,000 Speaker 1: study after study after study that once somebody moves into 288 00:13:46,040 --> 00:13:49,280 Speaker 1: a rent control apartment, they are very unlikely to ever leave, 289 00:13:49,440 --> 00:13:51,280 Speaker 1: and a lot of times we'll pass that to a 290 00:13:51,320 --> 00:13:53,840 Speaker 1: friend or a family member if they do want to leave, 291 00:13:54,520 --> 00:13:56,760 Speaker 1: And so right off the bat, it takes all of 292 00:13:56,760 --> 00:13:59,920 Speaker 1: this inventory off the market. Typically, in like lower income housing, 293 00:14:00,080 --> 00:14:02,480 Speaker 1: there's a lot of turnovers, there's always opportunities to move, 294 00:14:02,760 --> 00:14:04,480 Speaker 1: but in this type of a scenario, it takes all 295 00:14:04,520 --> 00:14:08,040 Speaker 1: of that off the market. Another problem with this is 296 00:14:08,080 --> 00:14:11,240 Speaker 1: that me, being an owner of a building there, I 297 00:14:11,280 --> 00:14:13,760 Speaker 1: want to keep up with the maintenance on it. If 298 00:14:13,840 --> 00:14:15,440 Speaker 1: you let the building get too far away, it can 299 00:14:15,480 --> 00:14:20,880 Speaker 1: become very expensive. So, being the greedy landlord that I am, 300 00:14:21,520 --> 00:14:24,560 Speaker 1: I want to maximize my profits. In order to maximize 301 00:14:24,560 --> 00:14:26,640 Speaker 1: my profits because I'm so greedy, I want to keep 302 00:14:26,680 --> 00:14:29,640 Speaker 1: the building up to date. Now, I would imagine you, 303 00:14:29,720 --> 00:14:31,240 Speaker 1: if you were a renter, would like to be in 304 00:14:31,280 --> 00:14:33,720 Speaker 1: a building that maintenance was up to date. I would 305 00:14:33,760 --> 00:14:37,200 Speaker 1: imagine that you probably wouldn't want the roof leaking, right, 306 00:14:37,280 --> 00:14:39,040 Speaker 1: probably wouldn't want the sidewalks crack. 307 00:14:39,120 --> 00:14:40,320 Speaker 2: You wouldn't want that. 308 00:14:40,760 --> 00:14:43,320 Speaker 1: But see, I wouldn't want that either as an owner, 309 00:14:43,520 --> 00:14:46,760 Speaker 1: because if I let the ceilings leak, that's going to 310 00:14:46,840 --> 00:14:50,040 Speaker 1: cause all kinds of other problems that it's going to cost. 311 00:14:49,800 --> 00:14:50,960 Speaker 2: Me way more money. 312 00:14:51,000 --> 00:14:53,040 Speaker 1: I'm much better off just to fix the roof right 313 00:14:53,080 --> 00:14:55,520 Speaker 1: now instead of having to deal with the consequence later. 314 00:14:55,560 --> 00:14:59,440 Speaker 1: But the problem is, if they cap the amount of 315 00:14:59,560 --> 00:15:02,920 Speaker 1: price I could charge for the rent, I don't have 316 00:15:03,040 --> 00:15:07,880 Speaker 1: the money to put into the maintenance. And if you 317 00:15:07,920 --> 00:15:09,440 Speaker 1: know typically what I'd want to do is I'd want 318 00:15:09,440 --> 00:15:11,680 Speaker 1: to fix it up. I'd want to Hey, let's paint it, 319 00:15:11,760 --> 00:15:14,120 Speaker 1: Let's give it a new facelift, let's put a new 320 00:15:14,200 --> 00:15:15,720 Speaker 1: roof on it, let's. 321 00:15:15,520 --> 00:15:16,240 Speaker 2: Add a pool. 322 00:15:16,560 --> 00:15:19,160 Speaker 1: But in order to add those things, it costs me 323 00:15:19,200 --> 00:15:21,440 Speaker 1: more money, and so I might need to raise the 324 00:15:21,480 --> 00:15:25,120 Speaker 1: rent in order to offset that. But if I can't 325 00:15:25,200 --> 00:15:26,160 Speaker 1: raise the rent, then guess what. 326 00:15:26,560 --> 00:15:27,120 Speaker 2: No maintenance. 327 00:15:27,160 --> 00:15:30,400 Speaker 1: So now I'm forced to be a slumlord and you're 328 00:15:30,440 --> 00:15:31,840 Speaker 1: forced to live in squalor. 329 00:15:32,200 --> 00:15:32,840 Speaker 2: That's no good. 330 00:15:32,960 --> 00:15:36,360 Speaker 1: So one, it takes away inventory. Two it forces things 331 00:15:36,400 --> 00:15:39,720 Speaker 1: to fall into deterioration. The law of entropy takes over 332 00:15:39,800 --> 00:15:41,920 Speaker 1: things that are left on their own fall to disorder. 333 00:15:42,200 --> 00:15:45,320 Speaker 1: Now it's easy to maybe see that in the light 334 00:15:45,440 --> 00:15:48,200 Speaker 1: of real estate, for example, but one of the things 335 00:15:48,200 --> 00:15:50,400 Speaker 1: that I was looking at is what the Biden administration 336 00:15:50,440 --> 00:15:54,240 Speaker 1: put through in what they call the Inflation Reduction Act 337 00:15:54,280 --> 00:15:56,080 Speaker 1: the IRA. Of course, you know, you hear me talk 338 00:15:56,080 --> 00:15:58,320 Speaker 1: about this all the time. How insane it is they 339 00:15:58,360 --> 00:16:00,640 Speaker 1: call these things. They label these things is like almost 340 00:16:00,640 --> 00:16:04,040 Speaker 1: the opposite of what they really are. And so somehow, 341 00:16:04,240 --> 00:16:06,760 Speaker 1: by printing trillions of dollars, we got this massive amount 342 00:16:06,800 --> 00:16:09,520 Speaker 1: of inflation. And so they create this Inflation Reduction Act, 343 00:16:10,960 --> 00:16:14,880 Speaker 1: which is supposed to reduce inflation, hence the name, and 344 00:16:14,920 --> 00:16:17,200 Speaker 1: they're going to do that by, yes, printing trillions of 345 00:16:17,200 --> 00:16:21,720 Speaker 1: more dollars. Now, a logical person might go, well, wait 346 00:16:21,720 --> 00:16:23,400 Speaker 1: a minute. Wasn't it the trillions of dollars that cause 347 00:16:23,440 --> 00:16:25,400 Speaker 1: the inflation in the first place, So how could printing 348 00:16:25,400 --> 00:16:28,520 Speaker 1: more trillions of dollars actually reduce the inflation? And if 349 00:16:28,560 --> 00:16:30,920 Speaker 1: you ask that question then you would be right, but 350 00:16:30,960 --> 00:16:32,760 Speaker 1: they would call you an idiot, So don't ask that question. 351 00:16:32,880 --> 00:16:36,280 Speaker 1: But they have a better plan what they'll do, because, 352 00:16:36,320 --> 00:16:38,360 Speaker 1: of course, yes, you're right, the trillions of dollars will 353 00:16:38,360 --> 00:16:44,200 Speaker 1: add towards more inflation, but not if they cap the prices. 354 00:16:45,080 --> 00:16:47,760 Speaker 1: M that sounds like a pretty good plan. So one 355 00:16:47,840 --> 00:16:49,080 Speaker 1: of the things that we're going to do, and it 356 00:16:49,120 --> 00:16:50,400 Speaker 1: was in this Inflation Production Act. 357 00:16:50,400 --> 00:16:51,680 Speaker 2: By campaign on this. 358 00:16:51,720 --> 00:16:56,000 Speaker 1: Hard is he is going to make drugs more affordable. 359 00:16:56,120 --> 00:16:59,120 Speaker 1: Not the drugs on your street, but healthcare drugs, right, pharmaceuticals. 360 00:16:59,120 --> 00:17:02,840 Speaker 1: He wants to make them more affordable. And so through 361 00:17:02,840 --> 00:17:06,120 Speaker 1: the HAHS, they want to negotiate prices for the drugs 362 00:17:06,280 --> 00:17:09,199 Speaker 1: to be cheaper. They want manufacturers of these drugs to 363 00:17:09,320 --> 00:17:12,320 Speaker 1: sell them for cheaper. They want to tell them how 364 00:17:12,400 --> 00:17:16,600 Speaker 1: much they can sell them for. Okay, Well, that sounds 365 00:17:16,640 --> 00:17:19,120 Speaker 1: good on the surface. Again, that's a first order effect. 366 00:17:19,560 --> 00:17:23,560 Speaker 1: But what if it costs more to make the drug 367 00:17:24,040 --> 00:17:27,879 Speaker 1: than what I can sell it for. Well, then I 368 00:17:27,880 --> 00:17:30,560 Speaker 1: guess I won't make it, because businesses are in the 369 00:17:30,600 --> 00:17:35,880 Speaker 1: business of making money. Right, But what else happens? Could 370 00:17:35,880 --> 00:17:39,439 Speaker 1: it possibly lead to higher rates of death? Could it 371 00:17:39,560 --> 00:17:43,280 Speaker 1: possibly lead to lower quality of living? Well, these are 372 00:17:43,280 --> 00:17:45,040 Speaker 1: some questions that we're gonna dig into. And I have 373 00:17:45,160 --> 00:17:46,480 Speaker 1: the facts. I got the receipts, I. 374 00:17:46,480 --> 00:17:47,080 Speaker 2: Got the data. 375 00:17:47,200 --> 00:17:48,639 Speaker 1: We're gonna dig into this. I'm gonna break this down. 376 00:17:48,680 --> 00:17:51,920 Speaker 1: We're gonna look at some other examples throughout history. We're 377 00:17:51,920 --> 00:17:54,200 Speaker 1: gonna look at other countries that are doing the same thing. 378 00:17:54,400 --> 00:17:57,000 Speaker 1: And then I'm gonna tell you, unfortunately what's inevitable. But 379 00:17:57,040 --> 00:17:59,680 Speaker 1: the best part is what we can do about this. 380 00:18:00,000 --> 00:18:01,600 Speaker 2: So I got a lot to cover. I gotta take 381 00:18:01,600 --> 00:18:02,479 Speaker 2: a very quick break though. 382 00:18:02,520 --> 00:18:04,040 Speaker 1: If you're just tuned in, you're listening to the Mark 383 00:18:04,080 --> 00:18:08,080 Speaker 1: Moss Show, we're talking about the unintended consequences of price 384 00:18:08,160 --> 00:18:10,000 Speaker 1: caps and what the Bide administration is doing. 385 00:18:10,160 --> 00:18:12,119 Speaker 2: We be back with more in a minute. Don't go away, 386 00:18:12,240 --> 00:18:14,239 Speaker 2: I've we hear back all right, welcome back. 387 00:18:14,280 --> 00:18:15,760 Speaker 1: If you're just tune in, you're listening to the Mark 388 00:18:15,800 --> 00:18:19,439 Speaker 1: Moss Show, We're talking about how price controls are always 389 00:18:19,440 --> 00:18:22,240 Speaker 1: at the end of every empire, and I'm giving you 390 00:18:22,400 --> 00:18:24,400 Speaker 1: exactly the play by play of what's happening now. We're 391 00:18:24,400 --> 00:18:26,880 Speaker 1: talking about how the Biden administration put forward this IRA 392 00:18:27,240 --> 00:18:29,840 Speaker 1: Inflation Reduction Act, and one of the first things they 393 00:18:29,880 --> 00:18:33,040 Speaker 1: want to attack is the prices of drugs, prescription drugs, 394 00:18:33,359 --> 00:18:36,600 Speaker 1: and we can already see how IRA drug price controls 395 00:18:36,800 --> 00:18:42,760 Speaker 1: are already impacting its members research and development decisions. Specifically, 396 00:18:43,080 --> 00:18:47,480 Speaker 1: seventy eight percent are expected to cancel early stage pipeline projects, 397 00:18:47,640 --> 00:18:50,439 Speaker 1: sixty three percent plan to shift research and development away 398 00:18:51,280 --> 00:18:55,040 Speaker 1: from certain medicines. Ninety five percent are expected to develop 399 00:18:55,280 --> 00:18:57,920 Speaker 1: fewer new uses for medicines because of the limited time 400 00:18:57,960 --> 00:19:02,200 Speaker 1: available before being subject to government price setting. So because 401 00:19:02,240 --> 00:19:05,200 Speaker 1: they can't make as much money, they're not going to 402 00:19:05,240 --> 00:19:08,280 Speaker 1: spend as much time doing research and development. If we 403 00:19:08,320 --> 00:19:11,280 Speaker 1: don't do as much research and development, then we don't 404 00:19:11,280 --> 00:19:12,959 Speaker 1: have breakthroughs in medicine. 405 00:19:13,080 --> 00:19:15,160 Speaker 2: If we don't have breakthroughs in medicine, then a lot 406 00:19:15,200 --> 00:19:16,600 Speaker 2: of the gains that we've seen. 407 00:19:16,520 --> 00:19:19,480 Speaker 1: Like for example, tripling life expectancy over the last hundred years, 408 00:19:19,760 --> 00:19:23,760 Speaker 1: starts to go away. Now we've seen this time and 409 00:19:23,800 --> 00:19:27,080 Speaker 1: time again. Right, We've seen studies come out that show this, 410 00:19:27,680 --> 00:19:30,639 Speaker 1: But at the same time, we constantly, for some reason, 411 00:19:30,840 --> 00:19:33,199 Speaker 1: have more people wanting more and more of it. But 412 00:19:33,240 --> 00:19:35,359 Speaker 1: I want to run through some of the effects that 413 00:19:35,400 --> 00:19:38,480 Speaker 1: we've seen throughout history so we can start to understand this. Now, 414 00:19:38,640 --> 00:19:40,960 Speaker 1: this isn't new for the United States. I talked about 415 00:19:41,000 --> 00:19:44,800 Speaker 1: it being at the end of the Empire, but we've 416 00:19:44,840 --> 00:19:47,119 Speaker 1: actually seen it many times in the United States. We 417 00:19:47,160 --> 00:19:50,000 Speaker 1: saw in nineteen seventy one to nineteen seventy four then 418 00:19:50,320 --> 00:19:55,120 Speaker 1: President Richard Nixon used price controls, of course to control inflation. 419 00:19:55,560 --> 00:19:56,480 Speaker 2: Then they in pry. 420 00:19:56,920 --> 00:20:00,720 Speaker 1: Impose both price controls and wage controls, because of course, 421 00:20:00,720 --> 00:20:02,879 Speaker 1: if you make more money, that's a problem. 422 00:20:02,880 --> 00:20:03,720 Speaker 2: That's inflationary. 423 00:20:03,760 --> 00:20:06,160 Speaker 1: As a matter of fact, most people haven't realized that yet, 424 00:20:06,160 --> 00:20:08,800 Speaker 1: but the Federal Reserve, the central banks, they hate you. 425 00:20:09,640 --> 00:20:12,880 Speaker 1: They're trying to bring inflation down, and you making more 426 00:20:13,000 --> 00:20:16,080 Speaker 1: money is a problem for them. For some of you, 427 00:20:16,119 --> 00:20:17,720 Speaker 1: having a job is a problem for them. As a 428 00:20:17,760 --> 00:20:20,320 Speaker 1: matter of fact, they want to bring unemployment up, which 429 00:20:20,320 --> 00:20:24,200 Speaker 1: means they hope their goal is for millions of more. 430 00:20:24,119 --> 00:20:26,520 Speaker 2: Americans to actually lose their job. That's what they want. 431 00:20:26,640 --> 00:20:27,240 Speaker 2: That's their goal. 432 00:20:28,320 --> 00:20:31,080 Speaker 1: And they want to cap how much you can get 433 00:20:31,080 --> 00:20:34,920 Speaker 1: paid at your job, and how much then those manufacturers 434 00:20:35,040 --> 00:20:38,000 Speaker 1: where the companies can sell those products for. So we 435 00:20:38,000 --> 00:20:40,040 Speaker 1: saw that, like I said, nineteen seventy one to seventy four, 436 00:20:40,080 --> 00:20:43,240 Speaker 1: they did that. Now, at first it did seem to 437 00:20:43,440 --> 00:20:46,639 Speaker 1: slow the rate of inflation because people didn't have as 438 00:20:46,680 --> 00:20:49,119 Speaker 1: much money, businesses were not having as much money. 439 00:20:49,359 --> 00:20:51,840 Speaker 2: But then it ultimately backfired. As a matter of fact, 440 00:20:52,440 --> 00:20:53,680 Speaker 2: it led to shortages. 441 00:20:53,960 --> 00:20:56,960 Speaker 1: And if you're even caught up a little bit on 442 00:20:57,119 --> 00:20:59,600 Speaker 1: economics one oh one, you know that all prices are 443 00:21:00,200 --> 00:21:04,280 Speaker 1: the equilibrium between supply and demand, and so they can 444 00:21:04,320 --> 00:21:08,159 Speaker 1: affect the supply the demand side a little bit, but 445 00:21:08,280 --> 00:21:11,960 Speaker 1: eventually that leads to shortages, which then brings the supply 446 00:21:12,160 --> 00:21:15,199 Speaker 1: side down. And if the supply side drops faster than 447 00:21:15,200 --> 00:21:16,680 Speaker 1: the demand, guess what happens. 448 00:21:16,840 --> 00:21:17,879 Speaker 2: Prices go back up. 449 00:21:17,880 --> 00:21:20,239 Speaker 1: And that's exactly what happened. In the Nixon administration. We 450 00:21:20,280 --> 00:21:24,560 Speaker 1: saw shortages that happened for goods that were needed like 451 00:21:24,760 --> 00:21:29,200 Speaker 1: meat and gasoline and building materials. Now, these shortages led 452 00:21:29,240 --> 00:21:33,240 Speaker 1: to rationing, so in the seventies they were literally rationing gasoline. 453 00:21:33,240 --> 00:21:34,679 Speaker 1: You had to go only to the gas station on 454 00:21:34,720 --> 00:21:38,119 Speaker 1: certain days. It led to black markets for these types 455 00:21:38,160 --> 00:21:41,000 Speaker 1: of goods to be sold, and eventually they had to 456 00:21:41,000 --> 00:21:42,680 Speaker 1: cancel it. They had to lift these price controls in 457 00:21:42,760 --> 00:21:45,399 Speaker 1: nineteen seventy four because things had gotten so bad, but 458 00:21:45,400 --> 00:21:47,880 Speaker 1: the damage was already done. The controls that had led 459 00:21:47,880 --> 00:21:52,320 Speaker 1: to shortages rationing in black markets also had discouraged innovation. 460 00:21:52,640 --> 00:21:55,600 Speaker 1: Of course, no one was investing, no one was building more. 461 00:21:56,280 --> 00:21:58,640 Speaker 1: Why would I build a factory to bring more supply 462 00:21:58,800 --> 00:22:00,639 Speaker 1: that could help bring the price down. Why would I 463 00:22:00,680 --> 00:22:02,920 Speaker 1: do that invest into that spend that time after energy, 464 00:22:02,960 --> 00:22:05,280 Speaker 1: money risk if I know that I can't make a 465 00:22:05,280 --> 00:22:07,560 Speaker 1: profit anyway because they're going to cap the prices, and 466 00:22:07,600 --> 00:22:10,879 Speaker 1: so of course they don't. And so then after that 467 00:22:11,000 --> 00:22:14,120 Speaker 1: was ended, we saw that the period from nineteen seventy 468 00:22:14,119 --> 00:22:16,240 Speaker 1: four to nineteen eighty four was a period of very 469 00:22:16,359 --> 00:22:22,000 Speaker 1: high inflation because then the prices were lifted, so then 470 00:22:22,119 --> 00:22:23,960 Speaker 1: people could sell them for what they needed to, which 471 00:22:23,960 --> 00:22:27,000 Speaker 1: means prices went up. So the Consumer Price Index is 472 00:22:27,000 --> 00:22:29,640 Speaker 1: measured by CPI rows an average of seven point eight 473 00:22:29,720 --> 00:22:31,440 Speaker 1: percent per year. 474 00:22:32,000 --> 00:22:32,720 Speaker 2: During this period. 475 00:22:32,760 --> 00:22:35,600 Speaker 1: Now that was an average of it during that year, 476 00:22:35,640 --> 00:22:37,280 Speaker 1: so it was obviously much higher. 477 00:22:37,440 --> 00:22:38,719 Speaker 2: We can see this throughout history. 478 00:22:38,840 --> 00:22:41,400 Speaker 1: France seventeen ninety three, the National Assembly was the ruling 479 00:22:41,440 --> 00:22:44,680 Speaker 1: body of France during the revolution. They imposed price controls 480 00:22:44,800 --> 00:22:47,760 Speaker 1: on a wide range of goods, including at that time apples. 481 00:22:48,320 --> 00:22:50,640 Speaker 1: This meant apple farmers weren't allowed to sell their apples 482 00:22:50,680 --> 00:22:54,160 Speaker 1: for more than a certain price. Now, of course they 483 00:22:54,160 --> 00:22:57,560 Speaker 1: were unpopular for people wanting to sell apples, and apple 484 00:22:57,600 --> 00:23:00,000 Speaker 1: farmers were less willing to produce apples if they couldn't 485 00:23:00,000 --> 00:23:02,680 Speaker 1: get a fair price for them, and if they didn't 486 00:23:02,680 --> 00:23:05,440 Speaker 1: want to produce more apples, then we didn't have any apples. 487 00:23:06,440 --> 00:23:08,720 Speaker 1: This is one of the things the price controls on 488 00:23:08,880 --> 00:23:11,960 Speaker 1: apples that we can trace back that actually attributed or 489 00:23:12,000 --> 00:23:17,240 Speaker 1: actually say contributed to the French Revolution. When people don't eat, 490 00:23:17,560 --> 00:23:20,479 Speaker 1: people aren't happy, When people don't make money, people aren't happy. 491 00:23:20,720 --> 00:23:23,200 Speaker 1: When people aren't happy, they tend to go to the streets. 492 00:23:23,200 --> 00:23:24,359 Speaker 1: We see it in France all the time. As a 493 00:23:24,359 --> 00:23:27,119 Speaker 1: matter of fact, we see it in France right now. 494 00:23:27,800 --> 00:23:28,359 Speaker 2: We can go on. 495 00:23:28,520 --> 00:23:33,040 Speaker 1: We can see that all of this led towards, you know, 496 00:23:33,400 --> 00:23:36,800 Speaker 1: this continued divide between rich and poor. It changed the 497 00:23:36,880 --> 00:23:40,880 Speaker 1: taxation system, It led to this monarchy class that kind 498 00:23:40,880 --> 00:23:43,359 Speaker 1: of grew up that the people weren't happy about this 499 00:23:43,440 --> 00:23:46,360 Speaker 1: sort of us versus them, We the people versus the rich, 500 00:23:46,840 --> 00:23:47,080 Speaker 1: and we. 501 00:23:47,040 --> 00:23:48,520 Speaker 2: See the same thing happened in our states today. 502 00:23:48,520 --> 00:23:50,840 Speaker 1: As a matter of fact, I saw a post from 503 00:23:51,200 --> 00:23:53,679 Speaker 1: Wall Street Silver on Twitter came out and showing that 504 00:23:53,720 --> 00:23:57,439 Speaker 1: the combined net worth of the fifty richest members of 505 00:23:57,480 --> 00:24:03,719 Speaker 1: Congress is four point eight billion dollar dollars. So members 506 00:24:03,720 --> 00:24:06,960 Speaker 1: of Congress, public servants that are there as a public 507 00:24:07,000 --> 00:24:10,399 Speaker 1: servant to do a service, that are making public servant wages, 508 00:24:11,000 --> 00:24:13,480 Speaker 1: they have a combined networth of four point eight billion dollars. 509 00:24:13,760 --> 00:24:15,680 Speaker 1: So they have an annual salary of one hundred and 510 00:24:15,720 --> 00:24:19,639 Speaker 1: seventy four thousand. At that rate, they would have to work, 511 00:24:20,480 --> 00:24:25,880 Speaker 1: you know, twenty seven thousand years to earn that much money. Obviously, 512 00:24:26,200 --> 00:24:27,800 Speaker 1: well some of them look like they've been alive for 513 00:24:27,840 --> 00:24:30,679 Speaker 1: twenty seven thousand years, but they haven't been. And so 514 00:24:30,760 --> 00:24:32,239 Speaker 1: how the heck did they get that much money? Well, 515 00:24:32,240 --> 00:24:33,679 Speaker 1: we can see that at the highest positions of our 516 00:24:33,720 --> 00:24:37,320 Speaker 1: government on both sides of now they're abusing their powerful 517 00:24:37,400 --> 00:24:40,560 Speaker 1: financial gain. Now again we can go back through history 518 00:24:40,640 --> 00:24:42,359 Speaker 1: some more. We can see China nineteen fifty three to 519 00:24:42,440 --> 00:24:45,720 Speaker 1: nineteen eighty. The Chinese government imposed all types of price 520 00:24:45,760 --> 00:24:50,360 Speaker 1: controls on a wide range of goods and services that 521 00:24:50,840 --> 00:24:57,120 Speaker 1: led towards shortages. It was the centrally planned economy, Mao's 522 00:24:57,160 --> 00:24:59,720 Speaker 1: great lea forward, trying to bring the country forward, that 523 00:25:00,040 --> 00:25:03,200 Speaker 1: constantly caused these types of things to go. Everyone should 524 00:25:03,480 --> 00:25:06,400 Speaker 1: work on steel, So then in the backyard of everybody's 525 00:25:06,440 --> 00:25:08,680 Speaker 1: houses they had smelting pots and they were making steel, 526 00:25:08,720 --> 00:25:12,400 Speaker 1: which led to massive amounts of pollution and massive amounts 527 00:25:12,400 --> 00:25:16,920 Speaker 1: of waste being all over the ground. Then mouths the 528 00:25:17,000 --> 00:25:19,359 Speaker 1: great idea was to cut down the forest, or his 529 00:25:19,440 --> 00:25:21,280 Speaker 1: idea was to go kill all the sparrows because they 530 00:25:21,280 --> 00:25:21,880 Speaker 1: were eating the crops. 531 00:25:21,920 --> 00:25:23,000 Speaker 2: And then we got overran. 532 00:25:22,760 --> 00:25:26,440 Speaker 1: By bugs and constantly was trying to affect one thing 533 00:25:26,800 --> 00:25:30,320 Speaker 1: that caused much bigger problems. And of course one of 534 00:25:30,359 --> 00:25:33,639 Speaker 1: the biggest problems was, yes, a lack of goods, and 535 00:25:33,680 --> 00:25:36,960 Speaker 1: specifically a lack of food. For example, the price of 536 00:25:37,000 --> 00:25:40,440 Speaker 1: grain was set at zero point three yu wan per kilogram, 537 00:25:40,640 --> 00:25:43,439 Speaker 1: which was below the cost of the production, which then 538 00:25:43,560 --> 00:25:45,760 Speaker 1: led to a shortage of grain, and then the government 539 00:25:45,760 --> 00:25:48,600 Speaker 1: had to ration it. Now we know through Maus greatly Forward, 540 00:25:48,920 --> 00:25:52,960 Speaker 1: Thank you communism, Thank you socialism. About I think about 541 00:25:53,040 --> 00:25:59,240 Speaker 1: fifty million people died during that time. Communism and socialism 542 00:25:59,320 --> 00:26:02,320 Speaker 1: is hard to say exactly, but somewhere have been responsible 543 00:26:02,359 --> 00:26:03,080 Speaker 1: for about. 544 00:26:02,800 --> 00:26:06,000 Speaker 2: One hundred million deaths. One hundred million. 545 00:26:06,040 --> 00:26:07,960 Speaker 1: When you go back through the Bullshek Revolution of the 546 00:26:07,960 --> 00:26:12,600 Speaker 1: early nineteen hundreds in Russia, through Germany and into Maus 547 00:26:12,640 --> 00:26:15,160 Speaker 1: Greatly Forward, we had about one hundred million people died. 548 00:26:15,840 --> 00:26:18,240 Speaker 1: Many of them tens of millions of them directly, you know, 549 00:26:18,359 --> 00:26:21,600 Speaker 1: murdered as they were opposing the governments. But the majority 550 00:26:21,640 --> 00:26:26,600 Speaker 1: of them died from starvation because of the centrally, these 551 00:26:26,640 --> 00:26:31,400 Speaker 1: horrible centrally planned ideas that always tried to control the economy, 552 00:26:31,560 --> 00:26:35,359 Speaker 1: which always led to price inflation, which always led to 553 00:26:35,440 --> 00:26:39,120 Speaker 1: price controls, which always led to shortages, which always led 554 00:26:39,160 --> 00:26:41,080 Speaker 1: to people starving to death. 555 00:26:41,720 --> 00:26:44,359 Speaker 2: It's sad. It's just the history, though. You have to 556 00:26:44,400 --> 00:26:44,639 Speaker 2: know this. 557 00:26:45,359 --> 00:26:48,000 Speaker 1: We saw Venezuela two thousand and three to the present. 558 00:26:48,400 --> 00:26:51,119 Speaker 1: The government's been improsing in price controls on all types 559 00:26:51,160 --> 00:26:53,520 Speaker 1: of goods and services. Venezuela, which was one of the 560 00:26:53,600 --> 00:26:56,320 Speaker 1: richest countries in the world at the early part of 561 00:26:56,320 --> 00:27:01,600 Speaker 1: the century, that has massive amounts of natural resources like oil, 562 00:27:01,760 --> 00:27:03,840 Speaker 1: but yet they just can't seem to get them out 563 00:27:03,880 --> 00:27:06,920 Speaker 1: of the ground. We see that their current inflation rate 564 00:27:07,000 --> 00:27:12,600 Speaker 1: is almost four hundred percent. They're still trying to impose 565 00:27:12,640 --> 00:27:15,000 Speaker 1: price controls. If you're just tuning in, you're listening to 566 00:27:15,040 --> 00:27:16,879 Speaker 1: the Mark Mos Show. We're talking about what happens at 567 00:27:16,920 --> 00:27:20,040 Speaker 1: the end of every empire and the end of every democracy, 568 00:27:20,080 --> 00:27:23,640 Speaker 1: which is capital controls and price controls, and where that's going. 569 00:27:23,680 --> 00:27:23,840 Speaker 2: Now. 570 00:27:23,920 --> 00:27:25,359 Speaker 1: I gotta take a quick break, but when I come back, 571 00:27:25,400 --> 00:27:28,320 Speaker 1: I'm going to talk about what the future holds for 572 00:27:28,400 --> 00:27:29,960 Speaker 1: us in the United States and most of the developed 573 00:27:29,960 --> 00:27:32,879 Speaker 1: world for that matter. What I think happens, probably the 574 00:27:33,280 --> 00:27:35,919 Speaker 1: most probable case in what we can do about it. 575 00:27:36,040 --> 00:27:37,480 Speaker 1: You don't want to miss this, so don't go away, 576 00:27:37,520 --> 00:27:38,400 Speaker 1: but I'm taking a quick break. 577 00:27:38,480 --> 00:27:42,080 Speaker 2: Don't go don't wait. Beer back, all right, welcome back. 578 00:27:42,119 --> 00:27:44,280 Speaker 2: If you just tune in, you're listening to the Markmas Show. 579 00:27:44,320 --> 00:27:45,440 Speaker 2: We've been talking. 580 00:27:45,119 --> 00:27:49,800 Speaker 1: About the inevitable end when you look back to history, 581 00:27:49,840 --> 00:27:53,160 Speaker 1: the inevitable end of an empire, of a democracy, how 582 00:27:53,200 --> 00:27:56,160 Speaker 1: it follows a predictable path. The last path is always 583 00:27:56,800 --> 00:27:59,879 Speaker 1: capital controls and price controls. How we're seeing that to 584 00:28:00,240 --> 00:28:03,560 Speaker 1: the Biden administration is imposing these capital controls through things 585 00:28:03,560 --> 00:28:07,920 Speaker 1: like the Inflation and Reduction Act, trying to reduce inflation 586 00:28:08,040 --> 00:28:10,679 Speaker 1: by cappying the prices. And I went through the historical 587 00:28:10,800 --> 00:28:14,720 Speaker 1: lens of how these always lead to shortages, which unfortunately 588 00:28:14,760 --> 00:28:17,600 Speaker 1: throughout history has always led to mass deaths. 589 00:28:17,880 --> 00:28:19,400 Speaker 2: And I'm certainly hoping that's not the case. 590 00:28:19,440 --> 00:28:22,399 Speaker 1: Hopefully we could learn from the past so we don't 591 00:28:22,400 --> 00:28:25,119 Speaker 1: have to continue to repeat those same mistakes. You know, 592 00:28:25,160 --> 00:28:27,080 Speaker 1: the quote is that those vote don't learn from history 593 00:28:27,080 --> 00:28:29,840 Speaker 1: are bound or actually is they doomed to repeat it? 594 00:28:30,960 --> 00:28:33,560 Speaker 1: Michael is, of course, if we can wake up enough 595 00:28:33,600 --> 00:28:37,159 Speaker 1: people to this. If people can understand what's going on, 596 00:28:37,400 --> 00:28:39,880 Speaker 1: if we can look back to history and bring those 597 00:28:39,960 --> 00:28:43,760 Speaker 1: lessons forward, maybe, just maybe we can spread the word 598 00:28:43,800 --> 00:28:47,120 Speaker 1: to other people and we can change the collective mindset. Look, 599 00:28:47,120 --> 00:28:50,000 Speaker 1: it doesn't take a majority to prevail. It only takes 600 00:28:50,040 --> 00:28:52,960 Speaker 1: a small, a right minority. It takes you and I, 601 00:28:53,040 --> 00:28:56,480 Speaker 1: as Samuel Adams said, spreading brush fires in the minds 602 00:28:56,520 --> 00:28:59,600 Speaker 1: of men. We don't need the masses. The masses are 603 00:28:59,600 --> 00:29:02,240 Speaker 1: always wrong, and so we need to know this. And 604 00:29:02,280 --> 00:29:03,760 Speaker 1: so that's why I'm talking about this. 605 00:29:03,800 --> 00:29:04,840 Speaker 2: Now. What I would ask for. 606 00:29:04,840 --> 00:29:07,800 Speaker 1: You is to go discuss these ideas with somebody else. 607 00:29:08,680 --> 00:29:11,920 Speaker 1: Stop talking about the weather, Stop talking about the TV 608 00:29:12,000 --> 00:29:14,840 Speaker 1: show that you saw, Talk about real subjects. 609 00:29:14,880 --> 00:29:16,200 Speaker 2: Talk about things that are going on in the world. 610 00:29:16,280 --> 00:29:18,920 Speaker 1: Talk about the direction in the world is going and 611 00:29:18,960 --> 00:29:21,200 Speaker 1: what we could and should be doing about it. 612 00:29:21,320 --> 00:29:24,360 Speaker 2: Maybe also get involved a little bit. 613 00:29:24,760 --> 00:29:27,560 Speaker 1: Get involved, talk to your friends, family, your coworkers, yes, 614 00:29:27,600 --> 00:29:30,360 Speaker 1: of course, but maybe even involved in your local government. 615 00:29:30,360 --> 00:29:33,080 Speaker 1: Because where we're going isn't pretty. Now let me paint 616 00:29:33,080 --> 00:29:36,120 Speaker 1: you a picture. So let's take a look ahead. Whether 617 00:29:36,160 --> 00:29:39,640 Speaker 1: you're in Europe, in China, well, obviously, even if you're 618 00:29:39,640 --> 00:29:41,120 Speaker 1: in Venezuela's a little bit too late for you. But 619 00:29:41,160 --> 00:29:42,920 Speaker 1: if you're in the developed world Canada, of the US, 620 00:29:43,280 --> 00:29:46,480 Speaker 1: you know, North America, Australia, Europe, et cetera, this is 621 00:29:46,520 --> 00:29:49,200 Speaker 1: where this is what your future holds, Okay, because at 622 00:29:49,200 --> 00:29:52,000 Speaker 1: the end of every democracy and empire, this is what happens. 623 00:29:52,560 --> 00:29:57,080 Speaker 1: So we have inflation raging obviously now in the United States, 624 00:29:57,160 --> 00:29:58,800 Speaker 1: you know, Jerome Palwat, the head of the FED, is 625 00:29:58,840 --> 00:30:00,520 Speaker 1: saying that they're bringing under control. 626 00:30:00,800 --> 00:30:01,560 Speaker 2: They're not quite sure. 627 00:30:01,600 --> 00:30:03,760 Speaker 1: There might be one or two more rate increases left, 628 00:30:03,920 --> 00:30:06,080 Speaker 1: but it thinks he's got under control. Meanwhile, we see 629 00:30:06,160 --> 00:30:09,280 Speaker 1: inflation is raging still in the UK and Europe really 630 00:30:09,280 --> 00:30:09,960 Speaker 1: really hard. 631 00:30:10,400 --> 00:30:12,560 Speaker 2: But it's happening in the developed world. China's happening. 632 00:30:12,640 --> 00:30:15,520 Speaker 1: And I just told you earlier in Venezuela four hundred percent. 633 00:30:16,000 --> 00:30:18,040 Speaker 1: So we have this massive problem with inflation. 634 00:30:18,120 --> 00:30:20,479 Speaker 2: Now. The inflation problem is not going away. I've been 635 00:30:20,560 --> 00:30:21,080 Speaker 2: very vocal. 636 00:30:21,360 --> 00:30:23,520 Speaker 1: I've been telling you for a year that it might 637 00:30:23,560 --> 00:30:25,959 Speaker 1: be some of the lowest inflation we'll see for the decade. 638 00:30:26,000 --> 00:30:28,400 Speaker 1: Even when it was six seven, eight nine percent, I 639 00:30:28,520 --> 00:30:31,920 Speaker 1: was saying that. Now, yes, I know, Mark, you're like Mark, 640 00:30:31,960 --> 00:30:34,840 Speaker 1: but it's down, you're wrong. Look, nothing goes up or 641 00:30:34,880 --> 00:30:39,240 Speaker 1: down in a straight line, so we have waves of inflation. 642 00:30:39,280 --> 00:30:40,920 Speaker 1: So when you look back into the seventies, you look 643 00:30:40,960 --> 00:30:42,720 Speaker 1: back into the forties when we had these periods of 644 00:30:42,760 --> 00:30:45,160 Speaker 1: high inflation, you see that inflation sort of comes in waves. 645 00:30:45,360 --> 00:30:47,400 Speaker 2: But you also know that nothing, no. 646 00:30:47,480 --> 00:30:49,880 Speaker 1: Stock or asset price ever goes up in a straight 647 00:30:49,920 --> 00:30:52,000 Speaker 1: line or even down in a straight line. So on 648 00:30:52,040 --> 00:30:54,040 Speaker 1: its way down, it's bouncing. On its way up, it's bouncing, 649 00:30:54,080 --> 00:30:56,640 Speaker 1: et cetera. And so inflation will come in waves, and 650 00:30:56,680 --> 00:31:01,080 Speaker 1: we'll have periods of high inflation and disinflation, but we 651 00:31:01,120 --> 00:31:04,240 Speaker 1: have more inflation. Why well, there's two main reasons why 652 00:31:04,280 --> 00:31:07,120 Speaker 1: we're going to have higher inflation. Number one is because 653 00:31:07,120 --> 00:31:10,400 Speaker 1: of as I talk about, the decentralized revolution or deglobalization. 654 00:31:10,560 --> 00:31:12,840 Speaker 1: You see this the rise of the bricks. The bricks 655 00:31:12,840 --> 00:31:15,800 Speaker 1: are rising up to challenge the dollars dominance, and they 656 00:31:15,800 --> 00:31:17,440 Speaker 1: don't want to be cool. They don't want to be 657 00:31:17,480 --> 00:31:22,120 Speaker 1: cooperative working together, They want to be competitive or coercive. 658 00:31:22,520 --> 00:31:26,320 Speaker 1: Presidency challenged the Bricks coalition at the meeting they had 659 00:31:26,400 --> 00:31:28,360 Speaker 1: just a week or two ago, saying that it's time 660 00:31:28,440 --> 00:31:31,640 Speaker 1: for the bricks to rise up and challenge the G seven. 661 00:31:32,000 --> 00:31:35,120 Speaker 1: So rather than being co competitive or I'm sorry cooperative, 662 00:31:35,320 --> 00:31:37,280 Speaker 1: they want to be competitive. Now what does that mean. Well, 663 00:31:38,160 --> 00:31:40,400 Speaker 1: that means that they want to be more restrictive on 664 00:31:40,480 --> 00:31:44,520 Speaker 1: free trade. They want to impose tariffs and regulations on 665 00:31:44,560 --> 00:31:47,520 Speaker 1: certain things. China and the US have been having this 666 00:31:47,600 --> 00:31:49,840 Speaker 1: sort of trade war going on for a number of years. 667 00:31:49,840 --> 00:31:52,000 Speaker 1: The US has completely cut them off of high level 668 00:31:52,560 --> 00:31:55,520 Speaker 1: computer chips microchips. They just cut us off of two 669 00:31:55,760 --> 00:31:58,600 Speaker 1: main commodities that we need for our ev sector, gaylium 670 00:31:58,600 --> 00:32:02,760 Speaker 1: and geranium. As these things happen, it continues to push 671 00:32:02,840 --> 00:32:06,120 Speaker 1: prices up. We see that the US now wants to 672 00:32:06,160 --> 00:32:09,120 Speaker 1: bring or re on shore manufacturing, which is a good thing, 673 00:32:09,360 --> 00:32:12,080 Speaker 1: but that's going to push the prices of everything up. 674 00:32:12,120 --> 00:32:14,760 Speaker 1: Things get more expensive as we start to get more 675 00:32:14,800 --> 00:32:19,160 Speaker 1: instability and insecurity around the world. You know, ships are 676 00:32:19,160 --> 00:32:22,040 Speaker 1: getting hijacked, it's getting dangerous to move things. 677 00:32:22,240 --> 00:32:22,840 Speaker 2: That's going to. 678 00:32:22,800 --> 00:32:26,800 Speaker 1: Push the prices of things up. So we have massive 679 00:32:26,840 --> 00:32:30,160 Speaker 1: inflation ahead. We also have massive because of a deglobalization 680 00:32:30,200 --> 00:32:33,720 Speaker 1: of decentralization. We also have massive inflation ahead because all 681 00:32:33,800 --> 00:32:37,239 Speaker 1: the governments are broke. So just like in Venezuela. As 682 00:32:37,240 --> 00:32:38,800 Speaker 1: I said, we're at four hundred percent inflation. 683 00:32:38,880 --> 00:32:39,560 Speaker 2: We're at Turkey. 684 00:32:39,760 --> 00:32:41,600 Speaker 1: The Turkish layer has lost ninety five percent of the 685 00:32:41,680 --> 00:32:44,000 Speaker 1: US dollar in the last five years because they're printing 686 00:32:44,040 --> 00:32:46,080 Speaker 1: too much money. But it's the fate of all the countries. 687 00:32:47,240 --> 00:32:49,479 Speaker 1: As I said at the beginning, the third inevitable in 688 00:32:49,480 --> 00:32:52,040 Speaker 1: life now is that there is going to be money printing. 689 00:32:52,120 --> 00:32:54,960 Speaker 1: And so as these governments continue to print more money, 690 00:32:54,960 --> 00:32:57,880 Speaker 1: it's going to continue to cause more inflation. And there's 691 00:32:57,880 --> 00:33:00,680 Speaker 1: no way to print less because we're in a based 692 00:33:00,800 --> 00:33:03,600 Speaker 1: monetary system, which means we constantly have to be filling 693 00:33:03,640 --> 00:33:06,240 Speaker 1: this up. Think about it this, because we're in a 694 00:33:06,280 --> 00:33:07,520 Speaker 1: debt based monetary system. 695 00:33:07,880 --> 00:33:10,200 Speaker 2: What does that mean exactly? So you hear this. 696 00:33:10,160 --> 00:33:12,959 Speaker 1: Reference like money printer, go burr, it's not really how 697 00:33:13,000 --> 00:33:15,800 Speaker 1: it works. The central banks don't actually print money. What 698 00:33:15,840 --> 00:33:17,959 Speaker 1: they do is they set the monetary policy for the 699 00:33:18,000 --> 00:33:21,360 Speaker 1: banks to create the money. Now, the banks create the 700 00:33:21,400 --> 00:33:24,040 Speaker 1: money by issuing a loan. So when you go to 701 00:33:24,080 --> 00:33:25,959 Speaker 1: the bank to get a business, a house, a car, 702 00:33:26,000 --> 00:33:29,000 Speaker 1: a boat, a bike, loan, that money is then created 703 00:33:29,000 --> 00:33:31,760 Speaker 1: into existence. So what does that mean exactly? What it 704 00:33:31,800 --> 00:33:37,479 Speaker 1: means is that the dollars are a liability. The debt 705 00:33:37,920 --> 00:33:41,760 Speaker 1: is the asset and the asset. The debt is the 706 00:33:41,840 --> 00:33:45,600 Speaker 1: asset because it's backed by the house, the car of 707 00:33:45,600 --> 00:33:48,680 Speaker 1: the boat. So the dollars of the liability that we're 708 00:33:48,680 --> 00:33:52,160 Speaker 1: created to pay for the asset, which is the collateral. 709 00:33:52,880 --> 00:33:56,320 Speaker 1: But what happens if that collateral, if the asset prices 710 00:33:56,320 --> 00:33:58,880 Speaker 1: start to plunge, Well, all of a sudden, the debt 711 00:33:58,960 --> 00:34:01,280 Speaker 1: is the dollars. The lie abilities are no longer backed 712 00:34:01,280 --> 00:34:03,200 Speaker 1: by the debt because the collateral has fallen, which then 713 00:34:03,280 --> 00:34:05,479 Speaker 1: means I get margin called we have to bring in 714 00:34:05,520 --> 00:34:09,360 Speaker 1: more capital. But in a liquidity event, how does that work. 715 00:34:09,680 --> 00:34:12,840 Speaker 1: It starts to create a doom loop. It starts to 716 00:34:12,880 --> 00:34:17,520 Speaker 1: create this waterfall, this event where the collateral has falling 717 00:34:17,560 --> 00:34:20,680 Speaker 1: so fast that it can't be covered. The banks, the 718 00:34:20,719 --> 00:34:23,320 Speaker 1: governments of the world cannot let this happen. 719 00:34:23,560 --> 00:34:24,960 Speaker 2: It can't happen, it won't happen. 720 00:34:25,440 --> 00:34:27,680 Speaker 1: And so the only way to prevent that from happening 721 00:34:27,800 --> 00:34:30,040 Speaker 1: is to make sure asset prices continue going up and 722 00:34:30,080 --> 00:34:33,520 Speaker 1: not down. And so they need inflation. I'm just letting 723 00:34:33,520 --> 00:34:36,560 Speaker 1: you know this is not going away. They have to 724 00:34:36,600 --> 00:34:39,680 Speaker 1: print the money because of the acid prices always have 725 00:34:39,719 --> 00:34:41,720 Speaker 1: to be going up because we're in a debt based system. 726 00:34:41,920 --> 00:34:44,560 Speaker 1: It's also inflation is going up because of the deglobalization 727 00:34:44,600 --> 00:34:48,040 Speaker 1: and the decentralization is happening right now. The other thing 728 00:34:48,080 --> 00:34:50,239 Speaker 1: that we have is because of the debt levels going 729 00:34:50,239 --> 00:34:52,560 Speaker 1: so high, so as the government has to continue to 730 00:34:52,680 --> 00:34:56,520 Speaker 1: print more money, deficit level spending, spending more than bringing in. 731 00:34:56,520 --> 00:34:58,959 Speaker 2: As a matter of fact, in the US, we've now 732 00:34:59,080 --> 00:35:00,440 Speaker 2: reached or. 733 00:35:00,400 --> 00:35:03,160 Speaker 1: We've had to double the deficit spending, and that is 734 00:35:03,280 --> 00:35:06,080 Speaker 1: inflationary as well. So we're in this doom loop where 735 00:35:06,080 --> 00:35:10,280 Speaker 1: we can't stop won't stop printing now. In this event, 736 00:35:10,640 --> 00:35:14,440 Speaker 1: the only way forward is this what's called financial repression, 737 00:35:14,800 --> 00:35:18,120 Speaker 1: and that means that we need inflation. The governments need 738 00:35:18,160 --> 00:35:19,880 Speaker 1: inflation to be really high, and they want inflation to 739 00:35:19,920 --> 00:35:22,520 Speaker 1: be high and bond yields to be low, and in 740 00:35:22,640 --> 00:35:26,839 Speaker 1: that gap is how they can steal from you. So 741 00:35:26,960 --> 00:35:30,960 Speaker 1: remember debt to GDP is a ratio debt divided by GDP. 742 00:35:31,360 --> 00:35:33,680 Speaker 1: So I can bring debt down or I can bring 743 00:35:33,719 --> 00:35:36,480 Speaker 1: GDP up. One way I bring GDP up is just 744 00:35:36,480 --> 00:35:39,719 Speaker 1: with inflation. I used to sell ten iPhones at one 745 00:35:39,719 --> 00:35:41,960 Speaker 1: thousand and I sell ten iPhones at two thousand, my. 746 00:35:41,960 --> 00:35:42,759 Speaker 2: GDP went up. 747 00:35:42,800 --> 00:35:46,360 Speaker 1: Congratulations, even though I didn't increase the economic output. And 748 00:35:46,400 --> 00:35:50,040 Speaker 1: so this financial repression high inflation, to bring the debt 749 00:35:50,080 --> 00:35:54,080 Speaker 1: to GDP ratio down the GDP up is the goal. 750 00:35:54,120 --> 00:35:56,399 Speaker 1: But the problem is in that type of environment, when 751 00:35:56,400 --> 00:35:59,320 Speaker 1: bond yields are low and inflation is high, then people 752 00:35:59,440 --> 00:36:02,480 Speaker 1: don't want to be trapped in that system, which is 753 00:36:02,520 --> 00:36:06,279 Speaker 1: why capital controls always fall into place at the end. 754 00:36:06,840 --> 00:36:11,200 Speaker 1: And with capital controls come price controls. All right, this 755 00:36:11,280 --> 00:36:13,840 Speaker 1: is the future, this is what we're facing. It's you 756 00:36:13,880 --> 00:36:14,680 Speaker 1: have to be prepared for it. 757 00:36:14,719 --> 00:36:16,880 Speaker 2: So what do we do about this? Well, we want to. 758 00:36:16,880 --> 00:36:20,279 Speaker 1: Be inside assets that aren't in that system. So this 759 00:36:20,320 --> 00:36:23,239 Speaker 1: would be non financial assets. I like bitcoin, That's what 760 00:36:23,320 --> 00:36:24,279 Speaker 1: I talk about it all the time. 761 00:36:24,640 --> 00:36:25,279 Speaker 2: Also, you can. 762 00:36:25,200 --> 00:36:27,319 Speaker 1: Think about gold, you can think about real assets like 763 00:36:27,400 --> 00:36:31,320 Speaker 1: scarce property such as waterfront property or other types of 764 00:36:31,360 --> 00:36:34,680 Speaker 1: trophy assets. You can think about fine art, collectibles, cars. 765 00:36:34,680 --> 00:36:37,800 Speaker 1: You can think about energy intensive assets again like gold, 766 00:36:38,000 --> 00:36:40,280 Speaker 1: other commodities, things like that. This is why you see 767 00:36:40,560 --> 00:36:44,000 Speaker 1: nations like China just bought their fifth lithium mind while 768 00:36:44,000 --> 00:36:47,560 Speaker 1: they're dumping US treasuries. They don't want the dollars, they'd 769 00:36:47,640 --> 00:36:50,799 Speaker 1: rather have the commodities, and that's the plan that I'm 770 00:36:50,840 --> 00:36:51,560 Speaker 1: taking as well. 771 00:36:51,800 --> 00:36:52,799 Speaker 2: I'd love to know what you have to think. 772 00:36:52,840 --> 00:36:54,839 Speaker 1: Hit me up on social media at one Mark Moss. 773 00:36:54,880 --> 00:36:56,600 Speaker 1: If you just tune in, you're listening to the Mark 774 00:36:56,640 --> 00:37:00,000 Speaker 1: Maas Show talking about the inevitable fate of the United States, 775 00:37:00,200 --> 00:37:02,360 Speaker 1: Europe and every other developed nation in the world. 776 00:37:04,520 --> 00:37:04,839 Speaker 2: That's a lot. 777 00:37:04,920 --> 00:37:07,800 Speaker 1: If you're listening on your podcast, please like and review 778 00:37:07,840 --> 00:37:10,040 Speaker 1: this episode. I'd love that if you could do that, 779 00:37:10,239 --> 00:37:11,839 Speaker 1: and that's what I got. Thanks so much for listening.