WEBVTT - Unveiling Bitcoin Wins & Economic Changes 0:00:00.800 --> 0:00:03.400 Hello, and welcome to another episode of The Mark Moss Show, 0:00:03.440 --> 0:00:06.680 where we're always talking about the decentralized revolution. I'm breaking 0:00:06.680 --> 0:00:09.240 down the way the world is changing so you can 0:00:09.360 --> 0:00:12.360 understand what's going on, where we're going and what you 0:00:12.400 --> 0:00:14.240 should be doing about it. And I like to bring 0:00:14.280 --> 0:00:17.439 you some education to kind of help you understand things differently, 0:00:17.440 --> 0:00:20.360 and some late breaking news so you can see the 0:00:20.360 --> 0:00:22.720 play by play of how these changes are taking place. 0:00:23.040 --> 0:00:24.720 And that's what we got coming up today. I got 0:00:24.720 --> 0:00:27.360 a lot of news stories that happened this week. I 0:00:27.400 --> 0:00:30.920 want to cover something really, really really big happened in 0:00:30.960 --> 0:00:34.440 the financial space with the SEC Security Exchange Commission and 0:00:34.560 --> 0:00:38.880 cryptocurrency big deal. I want to talk about the problems 0:00:38.960 --> 0:00:41.800 the United States is having when it really comes down 0:00:41.840 --> 0:00:46.040 to dealing with this global decentralization that's happening, specifically in 0:00:46.080 --> 0:00:50.479 regards to ramping itself up against China and so forth. 0:00:50.720 --> 0:00:52.879 I want to talk about what is going on in 0:00:52.920 --> 0:00:57.040 the US real estate market with some new entrants into 0:00:57.040 --> 0:00:59.800 the space, as well as presidential candidates wane in against 0:00:59.800 --> 0:01:04.560 that and who you won't believe what this teacher just 0:01:04.560 --> 0:01:08.280 said to the student. It goes, it builds on exactly 0:01:08.319 --> 0:01:10.920 what I talked about last week on the show. We're 0:01:10.920 --> 0:01:13.479 going to cover all that and more, a whole lot more. 0:01:13.720 --> 0:01:16.040 So don't tune out. I got to cover all this. 0:01:16.920 --> 0:01:18.480 If you do have to tune out, don't worry. You 0:01:18.520 --> 0:01:20.560 can catch up on the podcast. Just search the Mark 0:01:20.640 --> 0:01:24.200 More Show on your favorite podcast player. Now, like I said, 0:01:24.440 --> 0:01:27.920 big news in the financial space overall, this is really 0:01:27.959 --> 0:01:31.600 about bitcoin and cryptocurrency. However, it's really about the financial 0:01:31.640 --> 0:01:34.960 system overall. What am I talking about. I'm talking about 0:01:34.959 --> 0:01:41.160 the SEC Security Exchange Mission getting whacked again, getting slapped again, 0:01:41.240 --> 0:01:44.200 let's say, getting their butt kicked again. If I should say, so, 0:01:44.240 --> 0:01:46.920 what am I talking about? Well, the SEC is meant 0:01:46.920 --> 0:01:50.560 to protect consumers. Of course, they don't do that. All 0:01:50.560 --> 0:01:52.880 they do is put consumers into more harm. That's what 0:01:52.920 --> 0:01:55.559 they do. In my opinion, as I've said many many times, 0:01:55.640 --> 0:01:59.000 I think they should just shut down in disgrace. They 0:01:59.040 --> 0:02:02.040 didn't stop any of the problems that happened in cryptocurrency 0:02:02.040 --> 0:02:04.880 over the last five six, seven years. They didn't prevent 0:02:04.920 --> 0:02:08.480 anything from going on. With the terror Luna collapse, that 0:02:08.520 --> 0:02:11.320 didn't help anybody. With the Celsius collapse, which is a 0:02:11.720 --> 0:02:16.239 US based regulated company. They didn't help anybody. They didn't 0:02:16.240 --> 0:02:18.519 help anybody prevent loss with the block file, which is 0:02:18.560 --> 0:02:21.160 again a US based company. They didn't help anybody with 0:02:21.200 --> 0:02:23.920 the FTX, even though Gary Ginslow, the head of the 0:02:23.919 --> 0:02:27.560 SEC is buddy Buddy and with with the FTX crew 0:02:27.760 --> 0:02:31.200 Sam Binkman Fried, they didn't help anybody with any of that. 0:02:31.520 --> 0:02:34.240 As a matter of fact, in my opinion, they only 0:02:34.320 --> 0:02:37.560 helped it get worse and harm more people. So I 0:02:37.600 --> 0:02:39.840 think they should shut down his grace. However, I think 0:02:39.880 --> 0:02:42.359 as I as I warned back I think November of 0:02:42.440 --> 0:02:44.520 last year, that Gary Ginzer was gonna come out swinging. 0:02:44.720 --> 0:02:47.000 He has egg on his face, he looks horrible, and 0:02:47.120 --> 0:02:49.080 he can't go out like that. So he's got to 0:02:49.120 --> 0:02:53.679 come extra heavy handed to really prove his proof, prove 0:02:53.720 --> 0:02:55.840 that he could get things under control, right, that he's 0:02:55.880 --> 0:02:57.560 a man of action or something like that. And so 0:02:58.040 --> 0:02:59.480 I warned that was gonna be the case, and that's 0:02:59.520 --> 0:03:03.880 certainly has been the case. They have started to slap judgments, 0:03:03.960 --> 0:03:07.320 or not judgments, but a regulatory action against all types 0:03:07.320 --> 0:03:10.359 of crypto projects as well as most of the crypto exchanges, 0:03:10.400 --> 0:03:12.519 which is what I had had predicted would be the 0:03:12.600 --> 0:03:14.440 main choke point. It's way usual to go after five 0:03:14.520 --> 0:03:16.880 or six exchanges, that is, you know, twenty five thirty 0:03:16.960 --> 0:03:21.120 thousand tokens. He's done some of both. But what's interesting 0:03:21.320 --> 0:03:26.120 is that they're getting the SEC themselves and Gary Ginsler 0:03:26.160 --> 0:03:29.400 is the one getting the SmackDown. So we've seen several 0:03:29.520 --> 0:03:35.680 high ranking law members basically calling for Gary Ginsler's resignation. 0:03:37.040 --> 0:03:40.000 We see, you know, people calling for him to step down, 0:03:40.360 --> 0:03:42.680 people for him to quit all of that. And at 0:03:42.720 --> 0:03:46.600 the same time, a lot of these enforcement actions that 0:03:46.600 --> 0:03:49.200 has been filing have also been getting slapped down. We 0:03:49.280 --> 0:03:51.560 saw I think I covered a few weeks ago, how 0:03:51.640 --> 0:03:55.240 the long standing case that everybody's been watching is the 0:03:55.280 --> 0:04:00.920 SEC versus Ripple and XRP and they sort of lost 0:04:01.000 --> 0:04:04.760 on some sort of made up on the other and 0:04:04.800 --> 0:04:07.880 I want to go back into that. But now another 0:04:07.920 --> 0:04:11.480 one which the SEC has been basically denying every single 0:04:11.560 --> 0:04:16.040 bitcoin ETF that's come across its desk, which doesn't make 0:04:16.080 --> 0:04:18.120 a lot of sense to me. They say that the 0:04:18.240 --> 0:04:21.240 reason why that they want they don't want to allow 0:04:21.360 --> 0:04:24.599 a spot bitcoin ETF is because they're not sure how 0:04:24.680 --> 0:04:28.080 much manipulation is out there in the market, but I don't. 0:04:28.120 --> 0:04:30.279 I've never really understood that. And the reason why is 0:04:30.320 --> 0:04:34.000 you have two types of ETFs. ETF one is where 0:04:34.440 --> 0:04:36.839 you don't really buy the underlying products. So what does 0:04:36.880 --> 0:04:38.680 that mean. That means if I were to buy a 0:04:38.680 --> 0:04:41.240 bitcoin ETF, a spot ETF, and I gave them a 0:04:41.279 --> 0:04:44.039 thousand dollars, they would have to go buy one thousand 0:04:44.120 --> 0:04:46.800 dollars with a bitcoin to back my thousand dollars in there. 0:04:46.880 --> 0:04:50.480 That's a spot ETF. But the other way is on 0:04:50.520 --> 0:04:54.320 the futures, where basically I'm just betting on the price 0:04:54.480 --> 0:04:57.760 direction of the underlying asset. And that's how most gold 0:04:57.800 --> 0:05:01.440 ETFs are. There's rumored, don't even know, it's rumored to 0:05:01.480 --> 0:05:05.680 have about five hundred fake paper ounces for every one 0:05:06.040 --> 0:05:09.600 real physical ounce. And so they're doing bitcoin the same way. 0:05:09.640 --> 0:05:13.360 So they've allowed those types of bitcoin ETFs to happen. 0:05:13.680 --> 0:05:17.000 But we don't have a spot a physical bitcoin ETF. 0:05:17.600 --> 0:05:19.640 And they say, because we don't know how much manipulation's 0:05:19.640 --> 0:05:22.120 out there, Well, if you manipulate the price, you manipulate 0:05:22.120 --> 0:05:23.720 the price, what difference does it make if I own 0:05:23.760 --> 0:05:25.720 the asset or not. We're still betting on the price 0:05:25.760 --> 0:05:29.320 of the asset either way, right, So that never made 0:05:29.360 --> 0:05:32.080 sense to me. But that's what they've been hanging on. Well, 0:05:33.000 --> 0:05:35.760 there's Grayscale Bitcoin Trust I've talked about for a long time, 0:05:35.839 --> 0:05:38.479 which is sort of like an ETF, but because ETFs 0:05:38.480 --> 0:05:41.200 aren't allowed, it's under a different sort of entity called 0:05:41.440 --> 0:05:45.320 a trust. But they Gray Scale wants to convert from 0:05:45.400 --> 0:05:48.560 this trust into an ETF. They already hold the bitcoin 0:05:49.120 --> 0:05:51.080 and so they've been trying to get that converted, and 0:05:51.120 --> 0:05:55.320 the SEC has continued to deny their application to convert 0:05:55.360 --> 0:05:59.480 from the trust into the ETF. So Gray Scale sued 0:06:00.839 --> 0:06:06.280 and Gray Scale one. The Gray Scale won the lawsuit. 0:06:06.360 --> 0:06:12.000 As a matter of fact, the judges unanimously repudiated the 0:06:12.040 --> 0:06:16.479 SEC's arguments and the agency of what the agency said. 0:06:17.080 --> 0:06:20.200 The appeals court found that the SEC to be arbitrary 0:06:20.240 --> 0:06:24.120 and capricious in its denial order of gbtc's conversion into 0:06:24.160 --> 0:06:28.440 an ETF, and it vacated the decision. They repudiated virtually 0:06:28.680 --> 0:06:32.320 every argument made by the SEC when comparing the bitcoin 0:06:32.400 --> 0:06:35.400 spot and the futures markets, saying the agency failed to 0:06:35.400 --> 0:06:38.440 adequately explain why it approved ETFs tracking one and not 0:06:38.560 --> 0:06:40.680 the other. That's exactly what I've been saying this whole time. 0:06:41.880 --> 0:06:46.600 They reputed virtually every argument made by the SEC. So 0:06:46.680 --> 0:06:48.880 the SEC is trying to say, no, no, no, these 0:06:48.880 --> 0:06:51.880 are different. You know, the spot and the futures are different. Well, 0:06:52.560 --> 0:06:55.480 the judge said, no, they're not. And so this is 0:06:55.520 --> 0:06:58.800 a big deal, and it continues to discredit, It continues 0:06:58.839 --> 0:07:01.120 to take away the credibility of the SEC and what 0:07:01.160 --> 0:07:06.279 Gary Ginsler is doing. And apparently, according to Bloomberg Intelligence, 0:07:06.480 --> 0:07:09.560 they're saying that now because this has happened, the chances 0:07:09.600 --> 0:07:13.840 of the SEC approving a spot bitcoin ETF this year 0:07:13.880 --> 0:07:17.640 have risen to seventy five percent from just sixty five 0:07:17.680 --> 0:07:23.520 percent or before the win. Now, Bloomberg Intelligence says that 0:07:23.520 --> 0:07:27.520 they believe that the odds are ninety five percent before 0:07:27.560 --> 0:07:29.840 the end of twenty twenty four. Now that's a big 0:07:29.880 --> 0:07:32.480 deal for a bunch of reasons. Like I said, it's 0:07:32.520 --> 0:07:35.080 a big deal if you're a GBTC holder, a Grayscale 0:07:35.080 --> 0:07:37.040 Bitcoin Trust holder. It's a big deal because it can 0:07:37.200 --> 0:07:41.360 unlock those tokens for you. It's also a big deal 0:07:41.400 --> 0:07:46.640 because it's showing a string of events where the SEC 0:07:46.760 --> 0:07:50.680 is continually getting smacked down. And so we're starting to 0:07:50.760 --> 0:07:55.240 see that this over you know, overburdensome, heavy handed approach 0:07:55.280 --> 0:07:58.760 by the SEC is getting peeled back. And I think 0:07:58.760 --> 0:08:00.400 that's a good thing. Like I said from the beginning, 0:08:00.640 --> 0:08:02.880 I think they should just shut down. And so they're 0:08:02.880 --> 0:08:06.400 not going to do that, but maybe it'll start to 0:08:06.440 --> 0:08:08.480 slow them down a little bit, take away some of them, 0:08:08.480 --> 0:08:11.000 like I said, some of their heavy handed actions. Now, 0:08:12.120 --> 0:08:16.080 the big ETF that everybody's waiting for is this Blackrock ETF. Now, 0:08:16.120 --> 0:08:19.520 Blackrock is the largest asset manager in the world. They're 0:08:19.880 --> 0:08:22.640 essentially an extension of the government, if you will. They 0:08:22.640 --> 0:08:24.560 do a lot of purchases for the FED, et cetera. 0:08:25.120 --> 0:08:28.240 And they have an ATF that's on the docket, a 0:08:28.320 --> 0:08:31.040 physical ETF, and they could be the first one in. 0:08:31.240 --> 0:08:34.400 Now is Blackrock good or bad for the future of 0:08:34.400 --> 0:08:39.200 bitcoin and crypto? Well, I'm no fan of Blackrock. That 0:08:39.360 --> 0:08:41.600 is not a mystery. I talk bad about them all 0:08:41.600 --> 0:08:43.679 the time. They've taken all your money and they use 0:08:43.679 --> 0:08:46.760 it against your best interest. So I would say that 0:08:46.800 --> 0:08:50.480 they're probably good and bad. I'm afraid that if they 0:08:50.679 --> 0:08:52.559 do like what they always do, which is take over 0:08:52.679 --> 0:08:55.120 majority interest in all these companies, they could use that 0:08:55.240 --> 0:08:58.520 for bad, like they do all the time. I could 0:08:58.520 --> 0:09:00.600 also argue that it could be good because it could 0:09:00.600 --> 0:09:03.599 bring a massive amount of people into the bitcoin in 0:09:03.600 --> 0:09:07.000 the cryptocurrency space, which could push the asset prices up 0:09:07.240 --> 0:09:09.640 sky high to the moon. So I guess it depends 0:09:09.640 --> 0:09:13.079 on it's good if you own crypto and bitcoin and 0:09:13.080 --> 0:09:15.000 you'd like to see it go higher. It could be 0:09:15.120 --> 0:09:18.200 bad because they could potentially try to centralize and manipulate 0:09:18.240 --> 0:09:20.719 it like they don't normally do. Now, if you're just 0:09:20.760 --> 0:09:22.880 tune in, you're listening to the markmas Show, we're talking 0:09:22.920 --> 0:09:25.599 about the decentralized Revolution. We've been talking about some of 0:09:25.600 --> 0:09:27.959 the latest breaking news headlines of the week. I got 0:09:28.000 --> 0:09:30.240 a lot more to cover when I come back, So 0:09:30.320 --> 0:09:33.400 don't go away. I'll bear back, all right, Welcome back. 0:09:33.400 --> 0:09:35.400 If you're tune in, you're listening to the Mark mass Show. 0:09:35.440 --> 0:09:38.720 We're talking about some of the latest breaking news headlines 0:09:38.760 --> 0:09:41.080 that happened this week that continue to build on our 0:09:41.160 --> 0:09:46.839 narrative of this decentralized revolution. Now, looking at the economy, 0:09:46.880 --> 0:09:49.640 I always like to look at through the lens of politics, finance, 0:09:49.920 --> 0:09:52.439 and technology, because it's really when you look at the 0:09:52.960 --> 0:09:55.240 convergence of those three things that you really start to 0:09:55.240 --> 0:09:57.240 build out a better picture of what the heck is 0:09:57.280 --> 0:09:59.920 going on. But in regards to the economy, which is 0:10:00.320 --> 0:10:04.760 driven by both politics and finance, if you want to 0:10:04.800 --> 0:10:06.800 know what's going on there, you kind of have to 0:10:06.880 --> 0:10:09.400 look at Jerome Powell, the head of the Federal Reserve. 0:10:09.920 --> 0:10:13.520 The Federal Reserve sets the monetary policy, uh, not just 0:10:13.559 --> 0:10:16.320 for the United States, but really for the whole world 0:10:16.520 --> 0:10:20.200 by setting the price of money. Right, so when they 0:10:20.240 --> 0:10:22.840 increase interest rates, like they've done the fastest rate in history, 0:10:23.480 --> 0:10:25.800 then we they're changing the price of money. They're making 0:10:25.800 --> 0:10:28.480 money more expensive. When money's more expensive, less people buy it. 0:10:29.640 --> 0:10:32.200 You buy money by paying the interest rate. Now, the 0:10:32.280 --> 0:10:35.440 FED just had their annual meeting in Jackson Hole, Wyoming, 0:10:35.600 --> 0:10:38.240 where it wasn't just the US and the FED, it 0:10:38.360 --> 0:10:41.840 was the international bankers as well. Christine Leguard from the 0:10:41.840 --> 0:10:44.920 ECB European Central Bank was over there as lots of 0:10:44.960 --> 0:10:47.760 other bankers were as well. Now, of course, since it's 0:10:47.800 --> 0:10:50.080 in the US and it's the Jerome Powell and the 0:10:50.080 --> 0:10:54.199 Fed's meeting, of course, mister Powell gave his keynote address. Now, 0:10:54.200 --> 0:10:56.439 a couple of things of interest in there was that 0:10:56.520 --> 0:11:02.920 he said that the fight against inflation wasn't finished and 0:11:02.960 --> 0:11:04.600 that there was still a long way to go to 0:11:04.640 --> 0:11:09.720 get the job done, which seems kind of hawkish. He 0:11:09.760 --> 0:11:12.120 said that the lower monthly readings for core inflation in 0:11:12.200 --> 0:11:15.560 June and July, we're welcome, So he liked it. But 0:11:15.840 --> 0:11:18.800 he said two months of good data are only the beginning. 0:11:19.200 --> 0:11:23.280 Twelve month core inflation data is still elevated. So he's 0:11:23.360 --> 0:11:26.240 kind of saying, look, we're committed to bring it down inflation. 0:11:26.280 --> 0:11:27.640 He said this many times. He said there's going to 0:11:27.679 --> 0:11:28.880 be pain. He said, we have to get back to 0:11:28.880 --> 0:11:32.200 two percent. He said, sure, we've seen some trends going down, 0:11:32.400 --> 0:11:35.240 but we're not content with that yet. So he said 0:11:35.280 --> 0:11:37.520 that quote, we see the current stance of our policy 0:11:37.520 --> 0:11:43.760 as restrictive, putting downward pressure on economic activity, hiring, and inflation. 0:11:44.600 --> 0:11:49.000 But we can't identify with certainty the neutral rate of interest, 0:11:49.480 --> 0:11:52.079 and thus there is always uncertainty about the precise level 0:11:52.080 --> 0:11:57.199 of monetary policy restraint end quote. Hmmm, kind of cryptic. 0:11:57.320 --> 0:11:59.360 Let me break that quote down for you a little bit. So, 0:11:59.440 --> 0:12:02.720 first of all, he said that we see that the 0:12:02.800 --> 0:12:07.120 current stance of policy as restrictive so that's his policy. 0:12:07.200 --> 0:12:11.600 So the policy he's enacting is restrictive. He says, quote 0:12:11.720 --> 0:12:16.280 we see as restrictive putting downward pressure on economic activity, hiring, 0:12:16.600 --> 0:12:20.440 and inflation. So we see current stands of policy, his 0:12:20.559 --> 0:12:24.160 policy that he's enacted being restrictive and putting press down 0:12:24.240 --> 0:12:28.640 pressure on the economy, hiring and inflation. So downward pressure 0:12:28.640 --> 0:12:33.280 on economic activity. Do you own a business, well, he 0:12:33.440 --> 0:12:36.000 is purposely trying to make it hard for your business. 0:12:36.080 --> 0:12:39.800 He's trying to push down economic activity. He doesn't want 0:12:40.000 --> 0:12:43.600 your business to have as many consumers or customers. That's 0:12:43.640 --> 0:12:48.280 his goal. He says that it has downward pressure on hiring, 0:12:49.040 --> 0:12:53.400 so unemployment. They want unemployment to go up, They want 0:12:53.520 --> 0:12:57.480 less people working. Think about that. What he's saying. Our 0:12:57.640 --> 0:13:01.160 current stance of policy, the policy that I, as the 0:13:01.160 --> 0:13:04.760 FED chair, have put in place, is trying to slow 0:13:04.800 --> 0:13:07.680 economic activity and hiring down. We don't want you to 0:13:07.679 --> 0:13:11.040 have a job your job making more money is a 0:13:11.120 --> 0:13:13.719 problem for us. It goes against what I'm trying to 0:13:13.760 --> 0:13:16.319 do because I'm trying to bring inflation down to two percent, 0:13:16.320 --> 0:13:18.880 and in order to do that, I need less people working, 0:13:19.440 --> 0:13:21.600 and I need less people making. I need more people 0:13:21.640 --> 0:13:26.560 making less money. How's that? Well, a good thing for 0:13:26.640 --> 0:13:28.840 jern Powace. He doesn't get voted in. We don't vote 0:13:28.880 --> 0:13:33.480 for him. Imagine people voting for someone who's literally trying 0:13:33.520 --> 0:13:37.760 to destroy their businesses and their livelihood. Pretty interesting. And 0:13:37.800 --> 0:13:41.000 then he goes on to say, we can't identify with 0:13:41.040 --> 0:13:43.760 certainty the neutral rate of interest, and thus there's always 0:13:43.800 --> 0:13:47.000 uncertainty about the precise level of monetary policy restraint. We 0:13:47.040 --> 0:13:49.880 can't identify the certainty. Well, there is no such thing 0:13:49.920 --> 0:13:53.640 a certain certainly. You can't control the certainty of the 0:13:53.679 --> 0:13:56.079 outcome of the financial system. To think that you can 0:13:56.200 --> 0:13:58.640 just show you that you're an idiot. But what he 0:13:58.679 --> 0:14:04.679 said is that the the precise level or the neutral 0:14:04.960 --> 0:14:08.600 rate of interest. So they're changing again the price of money, 0:14:08.640 --> 0:14:11.520 that's the interest rate, trying to find the neutral rate 0:14:11.559 --> 0:14:14.920 of interest. What the heck is the neutral rate of interest? Well, 0:14:15.000 --> 0:14:17.720 they can't define it with any certainty. But what they're 0:14:17.760 --> 0:14:22.120 trying to define is the rate. Is it four three percent? 0:14:22.360 --> 0:14:28.120 The rate at which monetary policy is neither contradictory nor expansionary. 0:14:28.600 --> 0:14:31.880 So when interest rates get low, the price of money, 0:14:31.920 --> 0:14:35.360 the rate of interest goes low. Money's cheap, so lots 0:14:35.400 --> 0:14:38.640 of people borrow it, so it expands. Expansionary is the 0:14:38.680 --> 0:14:42.560 word you use. But if it's expensive, then less people 0:14:42.720 --> 0:14:46.080 use it, and then it's contractory. So if money is expensive, 0:14:46.320 --> 0:14:48.680 then I don't open up that new office, I don't 0:14:48.720 --> 0:14:51.520 hire more people, I don't bring on new trucks, I 0:14:51.560 --> 0:14:53.720 don't service new clients because the money is too expensive 0:14:53.720 --> 0:14:58.280 for me to do that. So that's that's contracting the economy. 0:14:58.720 --> 0:15:01.760 But if money's too cheap, then I expand. Now I 0:15:01.800 --> 0:15:05.520 would argue that the market's always doing both and for 0:15:05.600 --> 0:15:08.960 them to this point, we cannot identify with certainty the 0:15:09.000 --> 0:15:12.200 neutral rate of interest. Well, of course you can't because 0:15:12.240 --> 0:15:16.040 you don't understand. You don't have enough information. It's not 0:15:16.080 --> 0:15:18.200 just your own power. Anybody who thought they could do 0:15:18.280 --> 0:15:20.760 that would be out of their mind. You don't have 0:15:20.920 --> 0:15:23.360 enough information to manage three hundred and thirty million people 0:15:23.360 --> 0:15:25.080 in the NY State, eight billion people in the world, and 0:15:25.160 --> 0:15:29.200 all they're changing once needs and desires. That's why the 0:15:29.200 --> 0:15:31.240 price of money is not supposed to be set. The 0:15:31.280 --> 0:15:33.640 price of money is set in the free market. You see. 0:15:33.720 --> 0:15:37.920 The way it works is that if I want to 0:15:37.960 --> 0:15:40.200 open up a new office, and I want to get 0:15:40.240 --> 0:15:42.720 new trucks so I can service more customers, and I 0:15:42.800 --> 0:15:45.160 have to go borrow money. I need to know how 0:15:45.240 --> 0:15:47.720 much that money's going to cost me. If it's too expensive, 0:15:47.840 --> 0:15:49.880 I don't take it. If it's too cheap, I do right. 0:15:50.720 --> 0:15:52.760 But the problem is is when that's not found in 0:15:52.760 --> 0:15:54.680 the free market. So the way it works is that 0:15:54.720 --> 0:15:57.239 if a lot of people have a lot of savings, 0:15:58.240 --> 0:16:01.040 then that money is cheap. We have more people with savings, 0:16:01.280 --> 0:16:05.680 more people trying to lend me money, so there's less 0:16:05.720 --> 0:16:08.440 people borrowing, more people trying to lend the price of 0:16:08.440 --> 0:16:10.920 that money goes down. When that money goes cheap, it 0:16:10.960 --> 0:16:13.440 tells me a lot about the economy. It tells me 0:16:13.520 --> 0:16:16.680 that there's customers out there that have money. So I 0:16:16.800 --> 0:16:18.400 borrow the money at this cheap rate because I know 0:16:18.440 --> 0:16:20.560 it's cheap and I know the economy is good. Now. 0:16:20.640 --> 0:16:23.400 The other the flip side is if there's a lot 0:16:23.480 --> 0:16:26.160 of people wanting to borrow and not very many savers 0:16:26.400 --> 0:16:29.440 and lenders, then the price of the money goes very expensive, 0:16:29.960 --> 0:16:32.520 and that tells me that maybe I shouldn't take on 0:16:32.560 --> 0:16:35.480 that loan because the economy is probably bad because there's 0:16:35.520 --> 0:16:38.520 not a lot of extra money in the system, so 0:16:38.560 --> 0:16:41.920 the price of money is supposed to change, Oh, you 0:16:41.960 --> 0:16:44.920 mean mark like all other prices, on supplying demand. Yes, 0:16:45.440 --> 0:16:50.920 on supplying demand, but somehow magically. Jerome Powell is trying 0:16:50.960 --> 0:16:55.520 to come up with the rate of interest, the neutral 0:16:55.600 --> 0:16:58.880 rate of interest, but he can't the personal quotes, so 0:16:58.920 --> 0:17:01.160 he's prepared. He says, quote, we're prepared to raise rates 0:17:01.200 --> 0:17:04.119 further if appropriate, and intend to hold policy at a 0:17:04.160 --> 0:17:08.080 restrictive level until we're confident that inflation is moving sustainably 0:17:08.280 --> 0:17:12.960 down toward our objective. But even then, he said, we'll 0:17:13.000 --> 0:17:17.280 proceed carefully with future rate hikes. So basically it's a 0:17:17.280 --> 0:17:21.760 bunch of wishy washy back and forth. We're pausitive, we 0:17:21.800 --> 0:17:23.840 see some good signs, but we're not sure if we're 0:17:23.840 --> 0:17:25.600 out of the woods yet, so we're gonna kind of 0:17:25.600 --> 0:17:28.000 wait and see. So, in my opinion, if you want 0:17:28.040 --> 0:17:30.320 me to interpret this fed speak, that's what we call 0:17:30.320 --> 0:17:34.520 it FED speak to you, he's playing both sides, leaving 0:17:34.520 --> 0:17:37.600 his options open. But in my opinion, he's setting the 0:17:37.720 --> 0:17:42.800 stage for no more hikes and saying that we might 0:17:42.920 --> 0:17:45.480 only have one or two more and we'll be done. 0:17:45.680 --> 0:17:47.840 That's what I'm thinking, That's what I'm getting out of 0:17:47.840 --> 0:17:49.719 this FED Speak. But what do you think i'd love 0:17:49.720 --> 0:17:51.040 to hear from you? Hit me up on social media 0:17:51.080 --> 0:17:53.080 at one Mark Moss and let me know. I'm gonna 0:17:53.080 --> 0:17:54.840 take a very quick break. If you're just tuning to 0:17:54.880 --> 0:17:56.520 listen to the Mark Mass Show, I'll be back with 0:17:56.640 --> 0:17:58.680 more in a minute though, so don't go away. I'll 0:17:58.680 --> 0:18:01.080 be right back, all right, Welcome back. If you're just 0:18:01.080 --> 0:18:02.960 tune in, you're listening to the Mark Mass Show. We're 0:18:03.000 --> 0:18:06.680 talking about the latest breaking news headlines of the week 0:18:07.080 --> 0:18:10.720 to show you that our decentralized revolution thesis is in 0:18:10.760 --> 0:18:14.080 full effect. What's happening, where we're going and what you 0:18:14.119 --> 0:18:16.640 should be doing about it. Taking you through the play 0:18:16.640 --> 0:18:18.800 by play so you don't get caught off guard. Now 0:18:19.119 --> 0:18:21.919 we talked before the break. I was talking about the 0:18:21.960 --> 0:18:26.520 FED speak and what they're doing to try to control 0:18:26.720 --> 0:18:29.919 the market, which is pretty crazy, right. The market is 0:18:30.000 --> 0:18:33.960 a organic organism that's made up of three hundred and 0:18:34.000 --> 0:18:36.920 thirty million people that have all different once changing one's 0:18:37.000 --> 0:18:39.639 needs and desires. Now, what their goal is that that 0:18:39.720 --> 0:18:41.600 they have a central planner that'd be able to essentially 0:18:41.640 --> 0:18:43.760 plan everything, But there's the problem that they don't have 0:18:43.840 --> 0:18:47.000 enough information. Of course, there's the problem the future that 0:18:47.080 --> 0:18:50.159 Klaus Schwab paints in his book. He paints his picture 0:18:50.200 --> 0:18:52.800 of this AI where all of our brains are hooked 0:18:52.840 --> 0:18:55.320 to this AI cloud, and then it can it can 0:18:55.400 --> 0:18:57.639 have enough data where it can manage this for us. 0:18:58.000 --> 0:18:59.960 But the problem I think that never works is that 0:19:00.480 --> 0:19:03.760 we as humans are irrational, and so while an AI 0:19:03.880 --> 0:19:05.919 might be able to look at every single decision I've 0:19:05.960 --> 0:19:09.120 ever made and map out my next most probable decision 0:19:10.760 --> 0:19:14.200 rationally based off of data, it doesn't take into effect 0:19:14.480 --> 0:19:20.800 into account that humans are irrational. So I always want 0:19:21.320 --> 0:19:23.359 steak every time I go to dinner. I have steak 0:19:23.400 --> 0:19:25.920 all the time. But for some reason, that chicken looked 0:19:25.960 --> 0:19:27.600 really good, and I just feel like having chicken right now. 0:19:27.640 --> 0:19:29.840 I don't know why, just for some reason, I just 0:19:29.840 --> 0:19:32.040 thought I'd have chicken, and so it can't take it 0:19:32.200 --> 0:19:35.440 into account. But where they're trying now other ways they're 0:19:35.440 --> 0:19:39.159 trying to control the economy is through well, as I 0:19:39.200 --> 0:19:41.560 said before, changing the price of money, but also by 0:19:41.680 --> 0:19:44.480 changing incentives. And this is what starts to get interesting. 0:19:45.119 --> 0:19:48.119 You see, when a government tries to control an economy 0:19:48.480 --> 0:19:52.359 with or i should say, a complex system with one 0:19:52.480 --> 0:19:57.639 single lever. It leads to other unintended consequences. So what 0:19:57.680 --> 0:20:01.600 am I talking about. Well, the FED has tried to 0:20:01.960 --> 0:20:05.520 slow down inflation by making you broke, and they do 0:20:05.600 --> 0:20:08.320 that by making the price of money very high. So 0:20:08.359 --> 0:20:10.800 when the price of money goes very high right now, 0:20:10.920 --> 0:20:14.080 buying a home is very difficult. As a matter of fact, 0:20:14.880 --> 0:20:16.879 buying a price of home depends on where you're at, 0:20:16.920 --> 0:20:19.399 but it has gone up by thirty forty percent just 0:20:19.440 --> 0:20:22.280 because of the price of money going up, and so 0:20:22.320 --> 0:20:24.679 it's harder. It's harder for people to buy homes. And 0:20:24.720 --> 0:20:27.760 so that is the government policy. They've tried to fix 0:20:29.119 --> 0:20:32.119 a problem from a different cause, but by changing the 0:20:32.119 --> 0:20:35.000 price of money. But then unintended consequences is other people 0:20:35.040 --> 0:20:37.520 go around that. So for example, we saw this week 0:20:37.560 --> 0:20:40.760 that that Zillo, you know, the website that tells you 0:20:40.800 --> 0:20:43.439 how much your home is worth, Zilo home Loans, is 0:20:43.480 --> 0:20:46.360 now offering a home loan with only a one percent 0:20:46.480 --> 0:20:50.800 down payment option. You see, So the FED wants to 0:20:51.000 --> 0:20:54.720 slow home buying down by making the price of money higher, 0:20:55.160 --> 0:20:57.359 and a company like Zillo just says, well, Okay, well 0:20:57.400 --> 0:21:00.000 what has changed the program? So we'll still make it attractive, 0:21:01.240 --> 0:21:05.000 which is why you can't change a complex system with 0:21:05.119 --> 0:21:07.399 one single thing. It's like your body. Your body's a 0:21:07.400 --> 0:21:09.960 complex system. And so I have let's say I have heartburn. 0:21:09.960 --> 0:21:11.720 So I go to my doctor. Hey, doctor, I have heartburn, 0:21:12.000 --> 0:21:14.280 and he gives me an ant ad, a prescription and tasset. 0:21:14.480 --> 0:21:16.880 But then I have all these different side effects. Right, 0:21:16.920 --> 0:21:19.000 all these medications you see advertised on TV all the time, 0:21:19.000 --> 0:21:20.879 they have all these different side effects. So all I 0:21:20.880 --> 0:21:22.760 did was have heartburn. My doctor could have said you 0:21:22.760 --> 0:21:25.680 should have a more alkaline diet. That would be easy. 0:21:25.760 --> 0:21:28.440 But it'saad he puts around on a prescription because he's 0:21:28.440 --> 0:21:32.480