1 00:00:13,800 --> 00:00:17,040 Speaker 1: Everyone, Welcome to another episode of the Market Disruptor Show. Today, 2 00:00:17,079 --> 00:00:19,720 Speaker 1: I am sitting down with Jeff Booth. He has written 3 00:00:19,720 --> 00:00:22,639 Speaker 1: a book called The Price of Tomorrow and it's a 4 00:00:22,800 --> 00:00:24,840 Speaker 1: very important book for today. It's a book that everybody's 5 00:00:24,880 --> 00:00:28,319 Speaker 1: interesting because it talks about deflation. Everybody must know about 6 00:00:28,320 --> 00:00:32,680 Speaker 1: inflation deflation. So anyway, Jeff, welcome to the show. Thanks 7 00:00:32,720 --> 00:00:35,120 Speaker 1: a lot for having me. Mark. All right, Jeff so um, 8 00:00:35,159 --> 00:00:36,920 Speaker 1: Like I said, you know, I know about your book. 9 00:00:36,960 --> 00:00:39,320 Speaker 1: I've been following you, listen to your interviews. A lot 10 00:00:39,360 --> 00:00:41,040 Speaker 1: of people maybe don't know. So why did you give 11 00:00:41,080 --> 00:00:42,919 Speaker 1: his quick background? I kind of like who you are 12 00:00:43,080 --> 00:00:47,120 Speaker 1: and what led you to this book. I'm a technology 13 00:00:47,200 --> 00:00:51,480 Speaker 1: entrepreneur for first and foremost, started a number of companies, 14 00:00:52,040 --> 00:00:55,080 Speaker 1: one that grew to over half a billion dollars in market, 15 00:00:55,120 --> 00:01:00,640 Speaker 1: capp Um and Boards and and uh many technolog g companies, 16 00:01:00,680 --> 00:01:05,000 Speaker 1: and founder a number of different technology companies. And I think, 17 00:01:05,720 --> 00:01:08,039 Speaker 1: and I would say, I have a front seat of 18 00:01:08,040 --> 00:01:11,280 Speaker 1: where technology is going because because I'm involved in so 19 00:01:11,319 --> 00:01:16,400 Speaker 1: many technology companies and I'm a reluctant author. I didn't 20 00:01:16,400 --> 00:01:19,400 Speaker 1: want to write the book. Okay, I wrote the book 21 00:01:19,440 --> 00:01:23,360 Speaker 1: because because I looked at where society was going because 22 00:01:23,360 --> 00:01:26,280 Speaker 1: of this, where technology was going out, where where technology 23 00:01:26,319 --> 00:01:30,800 Speaker 1: going The government's trying to stop where technology was going. 24 00:01:31,600 --> 00:01:34,240 Speaker 1: And I looked at the impact of society and looked 25 00:01:34,240 --> 00:01:35,840 Speaker 1: at my kids, and I said, what type of world 26 00:01:35,920 --> 00:01:38,800 Speaker 1: will I grow up in? And nobody was talking about 27 00:01:38,880 --> 00:01:42,360 Speaker 1: kind of this problem and I was. I was super frustrated. 28 00:01:42,440 --> 00:01:45,559 Speaker 1: So that's actually why I wrote the book. Yeah, great, Yeah, 29 00:01:45,560 --> 00:01:48,160 Speaker 1: it's such an important conversation and it's and it's pretty 30 00:01:48,160 --> 00:01:50,960 Speaker 1: deep one that has a lot of different facets and 31 00:01:51,040 --> 00:01:53,400 Speaker 1: areas to it. But um, if we talk about kind 32 00:01:53,440 --> 00:01:56,520 Speaker 1: of the technique, I want to talk about deflation overall, 33 00:01:56,560 --> 00:01:58,800 Speaker 1: but we'll start with kind of the tech disruption of 34 00:01:58,840 --> 00:02:01,360 Speaker 1: that deflation. UM. I know and probably a lot of 35 00:02:01,360 --> 00:02:04,320 Speaker 1: people know. Like when the presidential kind of cycle was 36 00:02:04,360 --> 00:02:06,920 Speaker 1: just getting started, we had a candidate Andrew Yang, and 37 00:02:07,000 --> 00:02:09,880 Speaker 1: he was this tech entrepreneur and he was telling the 38 00:02:09,880 --> 00:02:12,440 Speaker 1: whole world that tech was going to take everybody's jobs. 39 00:02:12,440 --> 00:02:14,440 Speaker 1: AI was going to take everybody's jobs. And so because 40 00:02:14,480 --> 00:02:17,760 Speaker 1: of that, the government needed to start paying everybody to 41 00:02:17,880 --> 00:02:21,760 Speaker 1: not work. And I guess you see the exact opposite 42 00:02:21,760 --> 00:02:24,359 Speaker 1: of that. So what do you think about that in 43 00:02:25,160 --> 00:02:29,080 Speaker 1: part of Andrew's platform, at the part where technology how 44 00:02:29,120 --> 00:02:31,560 Speaker 1: fast technology is moving and it's going to take jobs, 45 00:02:31,800 --> 00:02:36,520 Speaker 1: He's completely right, right, that's how uh, that is what's coming, 46 00:02:36,760 --> 00:02:39,520 Speaker 1: and it's been coming for some time. If you if 47 00:02:39,520 --> 00:02:43,239 Speaker 1: you just think, what is the point of technology, it's 48 00:02:43,280 --> 00:02:47,600 Speaker 1: two free our time. Right. No ceo that no no 49 00:02:47,919 --> 00:02:50,640 Speaker 1: company I work with, gets up every morning and says, 50 00:02:50,880 --> 00:02:53,280 Speaker 1: I have an idea for a great technology company. I'm 51 00:02:53,280 --> 00:02:57,440 Speaker 1: gonna make it more expensive for people. Right. The point 52 00:02:57,600 --> 00:03:00,600 Speaker 1: is you're using technology to recreate industry, reason make them 53 00:03:00,639 --> 00:03:04,000 Speaker 1: more efficient, right, And and the byproduct of that takes 54 00:03:04,080 --> 00:03:09,000 Speaker 1: jobs away, and the byproduct of that is deflationary. So 55 00:03:09,000 --> 00:03:14,040 Speaker 1: so the byproduct that reduces prices. Now that's a that's 56 00:03:14,040 --> 00:03:17,200 Speaker 1: a super interesting point because I mean I've I've studied 57 00:03:17,240 --> 00:03:19,959 Speaker 1: like the technological revolutions, there's been like five the last 58 00:03:19,960 --> 00:03:21,639 Speaker 1: two and fifty years, like the first one, really like 59 00:03:21,680 --> 00:03:26,239 Speaker 1: the industrial revolution, right, and so um, they created equipment 60 00:03:26,600 --> 00:03:31,080 Speaker 1: to help get things done faster in larger quantities, right, 61 00:03:31,240 --> 00:03:34,440 Speaker 1: whether that's equipment for the field to help people get 62 00:03:34,560 --> 00:03:37,560 Speaker 1: field work done faster, whether that was assembly lines to 63 00:03:37,600 --> 00:03:40,960 Speaker 1: get cars done faster, whether it was telephones to get 64 00:03:41,000 --> 00:03:44,120 Speaker 1: communication done faster. But everything as you're as you're saying, 65 00:03:44,680 --> 00:03:49,640 Speaker 1: everything is made to make work less, are less. And 66 00:03:50,080 --> 00:03:52,640 Speaker 1: let's stay on that point for a second, because there's 67 00:03:52,680 --> 00:03:56,120 Speaker 1: an argument. You could make an argument that where we 68 00:03:56,160 --> 00:04:00,160 Speaker 1: are in technology today, like the Industrial Revolution, detector they 69 00:04:00,680 --> 00:04:03,040 Speaker 1: what what will happen as you automate a whole bunch 70 00:04:03,080 --> 00:04:04,920 Speaker 1: of things and then you've created a whole bunch of 71 00:04:04,920 --> 00:04:07,800 Speaker 1: new industries, that world will replace more jobs than they 72 00:04:07,880 --> 00:04:11,080 Speaker 1: described and create a creative destruction. There's you would have 73 00:04:11,160 --> 00:04:15,960 Speaker 1: to if you're going to accept my thesis, you would 74 00:04:16,000 --> 00:04:19,120 Speaker 1: have to debate that topic. Right, is there a possibility 75 00:04:19,200 --> 00:04:22,840 Speaker 1: that this could create more jobs in the future where 76 00:04:22,839 --> 00:04:25,680 Speaker 1: we are in technology? And that's where I think a 77 00:04:25,680 --> 00:04:27,800 Speaker 1: lot of people look back to history and say it's 78 00:04:27,800 --> 00:04:31,080 Speaker 1: worked before. Right, You've gone through these periods, and those 79 00:04:31,080 --> 00:04:34,560 Speaker 1: periods were always really tough. They always ended kind of 80 00:04:34,560 --> 00:04:38,800 Speaker 1: in wars, right because you because a whole bunch of 81 00:04:38,800 --> 00:04:42,680 Speaker 1: people but were being left out. Right, governments inflated against that, 82 00:04:43,400 --> 00:04:47,880 Speaker 1: and you had revolutions and turned into wars. So forget 83 00:04:48,279 --> 00:04:51,599 Speaker 1: the getting through that part. Let's just argue, let's just 84 00:04:51,680 --> 00:04:54,400 Speaker 1: debate that topic. Could there me more jobs in the future. 85 00:04:55,360 --> 00:04:58,839 Speaker 1: And I don't think anybody that's working in technology believes 86 00:04:58,880 --> 00:05:02,120 Speaker 1: that could be true today. Oh really, that's interesting because 87 00:05:02,200 --> 00:05:05,839 Speaker 1: because it would. And and if if that, if you 88 00:05:05,880 --> 00:05:08,160 Speaker 1: find somebody, I'm happy to debate them on your show. 89 00:05:08,360 --> 00:05:10,599 Speaker 1: Because if you know how fast, if you know what's 90 00:05:10,640 --> 00:05:15,520 Speaker 1: happening in artificial intelligence, and artificial intelligence is replacing labor 91 00:05:15,560 --> 00:05:18,680 Speaker 1: at a rate we've never seen before. At first, artificial 92 00:05:18,680 --> 00:05:22,400 Speaker 1: intelligence needs a bunch of PhD researchers who are creating 93 00:05:22,880 --> 00:05:26,160 Speaker 1: the algorithms. But then the algorithms see things we don't see, 94 00:05:27,040 --> 00:05:30,120 Speaker 1: and it moves faster and faster. So the byproduct of 95 00:05:30,120 --> 00:05:33,440 Speaker 1: what's happening here is when I first started my first company, 96 00:05:33,760 --> 00:05:36,440 Speaker 1: it took me about five million dollars in capital to 97 00:05:36,560 --> 00:05:41,000 Speaker 1: create version one of our website and transportation system. That 98 00:05:41,120 --> 00:05:45,320 Speaker 1: same that same website transportation system is available to shot 99 00:05:45,320 --> 00:05:50,120 Speaker 1: on Shopify today. Actually way better for fifty dollars a month. Yeah, right, 100 00:05:50,760 --> 00:05:53,760 Speaker 1: and and so so so you're building on a stack 101 00:05:53,920 --> 00:05:57,400 Speaker 1: that is moving so fast, little pieces of technology that 102 00:05:57,440 --> 00:06:01,400 Speaker 1: are woven together that that costs almost nothing um for 103 00:06:01,560 --> 00:06:04,159 Speaker 1: entrepreneurs to and and and why do you why do 104 00:06:04,200 --> 00:06:07,400 Speaker 1: you think everything on your phone is free, right, right, 105 00:06:07,640 --> 00:06:11,160 Speaker 1: we celebrate deflation and all of the monopolies with credit right, 106 00:06:11,200 --> 00:06:15,039 Speaker 1: and the consumers if you look at Apple, if you 107 00:06:15,080 --> 00:06:19,279 Speaker 1: look at Um and all those apps competing for your attention, 108 00:06:19,760 --> 00:06:22,400 Speaker 1: have entrepreneurs on the other side competing for your attention, 109 00:06:22,680 --> 00:06:24,560 Speaker 1: and they drive the price down to free. You don't 110 00:06:24,640 --> 00:06:26,560 Speaker 1: you don't pay for your flashlight up. You don't pay 111 00:06:26,600 --> 00:06:29,000 Speaker 1: for your guitartoon or you don't pay for a million 112 00:06:29,080 --> 00:06:32,120 Speaker 1: or your camera anymore. You don't pay for anything um 113 00:06:32,240 --> 00:06:35,640 Speaker 1: And that's the point. It just drives abundance just to 114 00:06:35,880 --> 00:06:41,520 Speaker 1: humanity and price prices coming down. Yeah, I think you know. 115 00:06:41,680 --> 00:06:44,880 Speaker 1: I I think people know that kind of inherently, but 116 00:06:44,920 --> 00:06:48,200 Speaker 1: they haven't really thought through this. So. I mean when 117 00:06:48,200 --> 00:06:50,360 Speaker 1: I was a kid, we had the jets in cartoon, right, 118 00:06:50,400 --> 00:06:52,320 Speaker 1: and like they had like robots that were the maids 119 00:06:52,320 --> 00:06:54,400 Speaker 1: and they were doing their housekeeping, and everybody thought, oh 120 00:06:54,440 --> 00:06:55,960 Speaker 1: my gosh, when I grow up, I'm gonna have a 121 00:06:56,040 --> 00:06:57,599 Speaker 1: robot and they're gonna do all my work for me. 122 00:06:58,400 --> 00:07:02,240 Speaker 1: Like didn't we all want that? But but now we're 123 00:07:02,279 --> 00:07:05,240 Speaker 1: threatened by it somehow, right, I guess is what you're saying. Well, 124 00:07:05,520 --> 00:07:08,120 Speaker 1: we're threatened by it because we created a system that 125 00:07:08,200 --> 00:07:13,040 Speaker 1: requires growth and inflation. Right, It's and we we got 126 00:07:13,200 --> 00:07:16,800 Speaker 1: lulled into a belief that that was the way the 127 00:07:16,840 --> 00:07:21,760 Speaker 1: world worked, and like a fundamental law of nature that 128 00:07:21,880 --> 00:07:26,200 Speaker 1: you need inflation, right, And we were taught in economics 129 00:07:26,200 --> 00:07:28,720 Speaker 1: in school. We were taught it. And and so what 130 00:07:28,880 --> 00:07:32,400 Speaker 1: is inflection? Yeah, well let's let's save let's save that 131 00:07:32,560 --> 00:07:34,560 Speaker 1: for a little bit, because I think that is the 132 00:07:34,640 --> 00:07:38,520 Speaker 1: big thing that the discussions about. Right. It's like, don't 133 00:07:38,600 --> 00:07:42,480 Speaker 1: we want deflation, but we have a system that needs inflation, 134 00:07:42,840 --> 00:07:45,720 Speaker 1: and so the problem is what our once are versus 135 00:07:45,760 --> 00:07:50,160 Speaker 1: what we have don't fit. But before we jump into that, um, 136 00:07:50,200 --> 00:07:53,200 Speaker 1: just sticking back on the deflation thing for a minute. Uh, 137 00:07:53,240 --> 00:07:55,240 Speaker 1: and I guess just generally, so we could kind of 138 00:07:55,240 --> 00:07:58,560 Speaker 1: frame this for everybody when we're talking about deflation, what 139 00:07:58,560 --> 00:08:01,760 Speaker 1: what are you kind of talking about? Generally? Um, So 140 00:08:02,000 --> 00:08:04,960 Speaker 1: people may think like deflation, like the economy crashes. People 141 00:08:05,040 --> 00:08:07,920 Speaker 1: might think deflation, prices go down. When we're talking about 142 00:08:08,400 --> 00:08:11,280 Speaker 1: technology and this deflation, what do you what do you? 143 00:08:11,440 --> 00:08:15,360 Speaker 1: How do you? So? So simply, deflation is when your 144 00:08:15,400 --> 00:08:18,160 Speaker 1: money is worth more all the time, Right, So the 145 00:08:18,440 --> 00:08:20,720 Speaker 1: value or your currency rises in relation to goods and 146 00:08:20,760 --> 00:08:23,520 Speaker 1: services because and services go down, your value of your 147 00:08:24,000 --> 00:08:27,480 Speaker 1: and relate. So so you're purchasing power goes up. Right, 148 00:08:28,200 --> 00:08:31,120 Speaker 1: And if you ask any single person that question, would 149 00:08:31,120 --> 00:08:34,000 Speaker 1: they want that? They would say, Wow, that's excellent. Right, 150 00:08:34,040 --> 00:08:35,680 Speaker 1: that's what you're selling. That's what you want because it 151 00:08:35,720 --> 00:08:38,760 Speaker 1: frees your time, all of your time to as your 152 00:08:38,760 --> 00:08:41,520 Speaker 1: purchasing power goes up your time, you get an impact 153 00:08:41,559 --> 00:08:44,079 Speaker 1: on your time. That seems like a pretty good thing, 154 00:08:44,400 --> 00:08:47,840 Speaker 1: right yeah. Yeah, And as we roll that up into economy, 155 00:08:48,480 --> 00:08:50,400 Speaker 1: we say, well, that's a bad thing because it just 156 00:08:50,760 --> 00:08:55,439 Speaker 1: because and the truth it is a bad thing to 157 00:08:55,679 --> 00:09:00,000 Speaker 1: the existing economy we've built because the existing your economy 158 00:09:00,040 --> 00:09:03,360 Speaker 1: we've build requires inflation and it's it's almost a Ponzi 159 00:09:03,440 --> 00:09:07,480 Speaker 1: scheme of credit. Yeah, it can't be paid back. And 160 00:09:07,520 --> 00:09:11,240 Speaker 1: if you allow inflation to happen, the debt has to 161 00:09:11,280 --> 00:09:14,800 Speaker 1: be reset and there and it becomes it becomes a depression. 162 00:09:15,600 --> 00:09:18,200 Speaker 1: I think, Um, so I want so we'll talk about 163 00:09:18,200 --> 00:09:20,520 Speaker 1: the inflation, we'll talk about the competing systems, and then 164 00:09:20,559 --> 00:09:23,640 Speaker 1: I want to get into why maybe there's people, um 165 00:09:23,679 --> 00:09:26,880 Speaker 1: that resist against that because um, it's not just the 166 00:09:27,040 --> 00:09:30,880 Speaker 1: system that's resisting against it, it's also people. But before 167 00:09:30,920 --> 00:09:33,280 Speaker 1: we jump into that, so back in the deflation, I mean, 168 00:09:33,280 --> 00:09:35,680 Speaker 1: I think we frame that perfectly. And I've actually said 169 00:09:35,679 --> 00:09:38,040 Speaker 1: that many times when people ask, well, don't we need inflation? 170 00:09:38,080 --> 00:09:40,320 Speaker 1: And I say, let me ask you a question, would 171 00:09:40,320 --> 00:09:42,120 Speaker 1: you rather her money by more goods and services in 172 00:09:42,120 --> 00:09:44,880 Speaker 1: the future or less? Of course, everybody once more. I 173 00:09:44,920 --> 00:09:48,439 Speaker 1: mean it's like, it's like the most rhetorical question ever. Um, 174 00:09:48,440 --> 00:09:51,080 Speaker 1: so we want that, and that sounds good, but the 175 00:09:51,120 --> 00:09:54,280 Speaker 1: thought of putting people out of work, that sounds bad. 176 00:09:54,720 --> 00:09:58,920 Speaker 1: But don't we want don't we create the technology so 177 00:09:59,000 --> 00:10:02,040 Speaker 1: we can or less? And I think I think if 178 00:10:02,040 --> 00:10:07,439 Speaker 1: you kind of understand, um, how you know the system works, 179 00:10:07,480 --> 00:10:12,640 Speaker 1: how from bartering to money exchange. Um, it was about specialization. 180 00:10:12,679 --> 00:10:14,720 Speaker 1: And if I can specialize in growing food and you 181 00:10:14,720 --> 00:10:17,680 Speaker 1: can specialize in raising animals, then then you save me time, 182 00:10:17,720 --> 00:10:20,480 Speaker 1: I save you time, and we trade like it starts 183 00:10:20,520 --> 00:10:23,640 Speaker 1: at the most basic level and we're only growing past that. Um. 184 00:10:23,679 --> 00:10:26,880 Speaker 1: And that makes sense. Um, But you so I guess 185 00:10:26,960 --> 00:10:28,719 Speaker 1: let's dive into the system now a little bit. So 186 00:10:28,760 --> 00:10:31,800 Speaker 1: the system is set up inflationary, which means we're kind 187 00:10:31,800 --> 00:10:33,160 Speaker 1: of like on this treadmill, we have to kind of 188 00:10:33,240 --> 00:10:36,560 Speaker 1: keep always moving forward. But I guess maybe what you're 189 00:10:36,640 --> 00:10:40,240 Speaker 1: saying is that if technology, if if we allowed technology 190 00:10:40,280 --> 00:10:45,960 Speaker 1: to be deflationary, um, we could theoretically be working less 191 00:10:46,000 --> 00:10:48,280 Speaker 1: and achieving the same thing if we didn't have this 192 00:10:48,320 --> 00:10:51,440 Speaker 1: inflationary system. Is that we have a massive we have 193 00:10:51,520 --> 00:10:56,160 Speaker 1: a massive ability to free our time, right, and and 194 00:10:56,160 --> 00:10:59,679 Speaker 1: and and let's just forget what I want, forget what 195 00:10:59,720 --> 00:11:03,240 Speaker 1: you want. Let's just look at the facts, right, forget 196 00:11:03,240 --> 00:11:07,120 Speaker 1: what the central banks walked right, the fact Sometimes there's 197 00:11:07,120 --> 00:11:10,320 Speaker 1: a structural change in business. You see, you've been an entrepreneur, 198 00:11:10,400 --> 00:11:14,680 Speaker 1: I've been I'm an entrepreneur. In business, creative destruction happens, 199 00:11:14,880 --> 00:11:19,080 Speaker 1: and it happens because it typically the incumbent can't see 200 00:11:19,120 --> 00:11:22,520 Speaker 1: the structural change right, and they can't move their business 201 00:11:22,840 --> 00:11:26,280 Speaker 1: fast enough. They even sometimes in case of Kodak, they 202 00:11:26,320 --> 00:11:30,120 Speaker 1: invented the digital camera and twice the sass and tried 203 00:11:30,160 --> 00:11:34,200 Speaker 1: to get it to get Kodak executives to understand the 204 00:11:34,200 --> 00:11:36,560 Speaker 1: power of the digital camera and how it would replace 205 00:11:36,600 --> 00:11:41,320 Speaker 1: their business. But they sold, They sold film, right, and 206 00:11:41,400 --> 00:11:45,160 Speaker 1: they couldn't see their way through to what what Kodak 207 00:11:45,200 --> 00:11:48,240 Speaker 1: could become. And you go back to that abundance thing 208 00:11:48,280 --> 00:11:50,679 Speaker 1: I was talking about, we use we use way more 209 00:11:50,679 --> 00:11:53,880 Speaker 1: photos today. Yeah, there's a whole bunch of new businesses 210 00:11:53,880 --> 00:11:57,360 Speaker 1: that are created around photos, like Facebook, Google, Just the 211 00:11:57,800 --> 00:12:00,800 Speaker 1: amount of new businesses that are around photos, and we 212 00:12:00,880 --> 00:12:05,600 Speaker 1: use an abundance of them. With Instagram, they're they're free. Yeah, right, 213 00:12:05,640 --> 00:12:08,880 Speaker 1: they're they're they're completely free. So we used to have 214 00:12:08,920 --> 00:12:11,040 Speaker 1: to spend a bunch of money to take photos. I 215 00:12:11,080 --> 00:12:13,719 Speaker 1: remember buying a roll of film taking it pay to 216 00:12:13,760 --> 00:12:15,640 Speaker 1: get a process and you get to be very select 217 00:12:15,640 --> 00:12:18,439 Speaker 1: if you had shots or whatever. Right, and today now 218 00:12:18,440 --> 00:12:19,600 Speaker 1: I can just take as many of the one for 219 00:12:19,679 --> 00:12:22,680 Speaker 1: free and pick the best one and then and delete 220 00:12:22,679 --> 00:12:25,000 Speaker 1: the rest of That saves me a bunch of money 221 00:12:25,080 --> 00:12:28,040 Speaker 1: that I don't have to go make now exactly. And 222 00:12:28,240 --> 00:12:31,640 Speaker 1: so so in that in that example, you'll see the 223 00:12:31,720 --> 00:12:34,599 Speaker 1: same thing. So now roll that up instead of a 224 00:12:34,640 --> 00:12:38,000 Speaker 1: business example, roll that up to an entire system that 225 00:12:38,040 --> 00:12:41,760 Speaker 1: we all live in. Right, and you have a system 226 00:12:41,840 --> 00:12:45,319 Speaker 1: that's always required inflation, and we were taught that it's required, 227 00:12:45,320 --> 00:12:49,559 Speaker 1: and in fact, it was designed to require inflation. And 228 00:12:50,040 --> 00:12:54,000 Speaker 1: in that system, if you if you if you leverage 229 00:12:54,000 --> 00:12:58,640 Speaker 1: with debt and pay the debt back later with cheaper money. 230 00:12:58,720 --> 00:13:01,800 Speaker 1: Because it's you destroy the value of the currency, you're 231 00:13:01,800 --> 00:13:04,720 Speaker 1: a winner, right, And so if you keep that run, 232 00:13:04,920 --> 00:13:07,760 Speaker 1: that means asset prices keep rising and you if you 233 00:13:07,800 --> 00:13:11,520 Speaker 1: can leverage that, you're a winner. So on that side, 234 00:13:11,559 --> 00:13:16,960 Speaker 1: you're now that system competing against the deflationary the rate 235 00:13:17,200 --> 00:13:22,480 Speaker 1: of technologies driving deflation. Continuing to do that deflate to 236 00:13:22,679 --> 00:13:25,960 Speaker 1: that system is essentially pushing on a string. You create 237 00:13:26,040 --> 00:13:31,400 Speaker 1: your massive debt creation, massive monetization. And if all the 238 00:13:31,440 --> 00:13:35,280 Speaker 1: asset winners are also the belts, all the asset owners, 239 00:13:35,640 --> 00:13:38,800 Speaker 1: you be a whole bunch of billionaires and everything they have. 240 00:13:39,280 --> 00:13:42,400 Speaker 1: They have all the houses, most of the stocks, and 241 00:13:42,440 --> 00:13:45,720 Speaker 1: everything else. And if you do that, they you enriching 242 00:13:45,800 --> 00:13:49,000 Speaker 1: them at a crazy rate. Yes, let's go straight up. 243 00:13:50,360 --> 00:13:53,160 Speaker 1: And and all the people who don't have assets, because 244 00:13:53,200 --> 00:13:57,280 Speaker 1: you're destroying the value of currency, okay, and your currency 245 00:13:57,320 --> 00:13:59,880 Speaker 1: value is going down, you're picking their pocket to give 246 00:13:59,880 --> 00:14:03,640 Speaker 1: them the money, and so you get social disruption. Right. 247 00:14:03,920 --> 00:14:07,640 Speaker 1: And what I would go say is it doesn't matter 248 00:14:08,520 --> 00:14:12,880 Speaker 1: ultimately what we want um because what we want is 249 00:14:13,040 --> 00:14:16,160 Speaker 1: based on first principles. It matters what physics or what 250 00:14:16,400 --> 00:14:18,760 Speaker 1: what Where the trend is taking us, and inflation is 251 00:14:18,800 --> 00:14:20,920 Speaker 1: where the trend is taking us. And so we have 252 00:14:21,000 --> 00:14:23,480 Speaker 1: a couple of choices we could make to do that. 253 00:14:24,000 --> 00:14:28,680 Speaker 1: Andrew Yang's who you mentioned. Choice is this in a nutshell. 254 00:14:31,040 --> 00:14:34,480 Speaker 1: We're going to keep on pushing asset prices up. Assist. 255 00:14:34,600 --> 00:14:37,440 Speaker 1: The system requires inflation, and we're going to do everything 256 00:14:37,480 --> 00:14:40,920 Speaker 1: we can to keep us the prices high and then 257 00:14:40,960 --> 00:14:43,640 Speaker 1: the very because we did that the very same people 258 00:14:43,680 --> 00:14:47,040 Speaker 1: that we killed, because we did this right, We kept 259 00:14:47,080 --> 00:14:49,640 Speaker 1: rents high we could because we let didn't let the 260 00:14:49,640 --> 00:14:52,360 Speaker 1: system have a free market. The very syst those people 261 00:14:52,400 --> 00:14:54,600 Speaker 1: are gonna come to government. We're gonna make government bigger 262 00:14:55,320 --> 00:14:57,720 Speaker 1: to give them money to pay for the prices we 263 00:14:58,080 --> 00:15:03,120 Speaker 1: uh us that's we artificially create. It's just illogical, right, 264 00:15:03,840 --> 00:15:07,840 Speaker 1: and capitalism doesn't work that way, right, So um, and 265 00:15:08,000 --> 00:15:12,840 Speaker 1: and so you have all roads U B I and everything. 266 00:15:12,880 --> 00:15:15,640 Speaker 1: I just I totally understand why people want you be 267 00:15:15,760 --> 00:15:19,480 Speaker 1: I because the system is doesn't work right now. So 268 00:15:19,600 --> 00:15:22,680 Speaker 1: you're going to out you're gonna but but it won't. 269 00:15:22,720 --> 00:15:26,160 Speaker 1: That won't. That's not the fix, right, That is not 270 00:15:26,240 --> 00:15:31,160 Speaker 1: the fix. Yeah, So um, you have the system that 271 00:15:31,200 --> 00:15:34,160 Speaker 1: creates inflation. So we talked about the FED basically printing 272 00:15:34,200 --> 00:15:37,720 Speaker 1: money which is now pushing up asset prices um. And 273 00:15:37,720 --> 00:15:40,520 Speaker 1: then so you're punishing the people, or I shouldn't say punishing. 274 00:15:40,520 --> 00:15:42,440 Speaker 1: You're rewarding the people who have the assets. But then 275 00:15:42,480 --> 00:15:45,040 Speaker 1: you're taking some of their profits and then redistribute back 276 00:15:45,080 --> 00:15:49,160 Speaker 1: down to the people um. In other word, in other words, 277 00:15:49,240 --> 00:15:52,920 Speaker 1: the government is the entire economy. The government. It looks 278 00:15:53,280 --> 00:15:57,520 Speaker 1: it's communism. Yeah, it's socialism to communism. And we know 279 00:15:57,560 --> 00:16:00,160 Speaker 1: how managed markets were, We know how manages just out 280 00:16:00,240 --> 00:16:03,040 Speaker 1: his work. Right, Well, you and I you and I do. Yeah, 281 00:16:03,320 --> 00:16:08,360 Speaker 1: you're you're robbing the entrepreneurial process of creatives destruction and 282 00:16:08,360 --> 00:16:12,120 Speaker 1: and and you have subpart subpart gains to your economy. 283 00:16:12,400 --> 00:16:16,400 Speaker 1: So you have to trust and been evlevent benevolent leaders 284 00:16:17,760 --> 00:16:23,240 Speaker 1: and and and once you grab power, whether your generation 285 00:16:23,280 --> 00:16:25,560 Speaker 1: has been evolent or the next one is once you 286 00:16:26,320 --> 00:16:29,720 Speaker 1: that doesn't work. History shows us over and over that 287 00:16:29,720 --> 00:16:34,440 Speaker 1: that path is just just a path to thugs controlling everything. Yeah, 288 00:16:34,560 --> 00:16:37,440 Speaker 1: so you mentioned something called creative destruction and something that 289 00:16:37,440 --> 00:16:39,440 Speaker 1: I've talked about a bunch of times. And so basically 290 00:16:39,480 --> 00:16:42,640 Speaker 1: that means that the new way kills the old way. 291 00:16:42,760 --> 00:16:45,480 Speaker 1: So I've created a new system that gets rid of 292 00:16:45,520 --> 00:16:48,120 Speaker 1: an old system. Email was created and it killed the 293 00:16:48,200 --> 00:16:50,280 Speaker 1: US Postal service or whatever it is, something like that. 294 00:16:50,720 --> 00:16:54,360 Speaker 1: Um And and then you also mentioned capitalism or like 295 00:16:54,400 --> 00:16:57,360 Speaker 1: a free market, and so in a free market we 296 00:16:57,360 --> 00:16:59,960 Speaker 1: would typically see creative destruction. And as you said, code 297 00:17:00,200 --> 00:17:02,280 Speaker 1: is too big, so a small instagram comes up and 298 00:17:02,440 --> 00:17:06,000 Speaker 1: puts them out. But I think maybe also as the 299 00:17:06,200 --> 00:17:08,560 Speaker 1: as the government gets bigger, the market is less and 300 00:17:08,680 --> 00:17:10,199 Speaker 1: less free. I don't I don't see it as a 301 00:17:10,280 --> 00:17:12,879 Speaker 1: light switch. It's not like we're free. We're not free, right, 302 00:17:12,920 --> 00:17:15,240 Speaker 1: It's like degrees of less free. And as we've got 303 00:17:15,320 --> 00:17:19,440 Speaker 1: less free, the corporations use government to entrench their positions 304 00:17:19,560 --> 00:17:25,800 Speaker 1: and slow, if not stop, creative destruction. Do you see that? Yeah? Absolutely, Again, 305 00:17:26,080 --> 00:17:28,680 Speaker 1: that's a feature of the system, not about so so 306 00:17:29,040 --> 00:17:33,280 Speaker 1: so today. Let's let's a lot of times in this 307 00:17:33,320 --> 00:17:37,480 Speaker 1: type of political everything gets politicized, right, and you people 308 00:17:37,520 --> 00:17:41,040 Speaker 1: take sides and they can't see anything. Okay, let's just 309 00:17:41,119 --> 00:17:45,080 Speaker 1: imagine you're a CEO of an airline, right, and and 310 00:17:45,119 --> 00:17:47,760 Speaker 1: you made made a bunch of money this year and 311 00:17:47,800 --> 00:17:50,520 Speaker 1: the government has a policy of negative interest rates, are 312 00:17:50,600 --> 00:17:54,160 Speaker 1: near zero interest rates, and they effectively are saying, if 313 00:17:54,200 --> 00:17:57,000 Speaker 1: you hold cash on your balance sheet, we're going to 314 00:17:57,080 --> 00:18:00,159 Speaker 1: penalize you through inflection because it's gonna be worth next us. 315 00:18:00,200 --> 00:18:02,240 Speaker 1: Next year, it's gonna be worth less than next year. 316 00:18:02,680 --> 00:18:05,240 Speaker 1: So we're gonna hurt you if you hold cash on 317 00:18:05,280 --> 00:18:07,760 Speaker 1: your balance sheet. So what would you do as a CEO? 318 00:18:08,680 --> 00:18:11,359 Speaker 1: Probably buy back your stock, right, right, You're going to 319 00:18:11,440 --> 00:18:13,919 Speaker 1: try to get a return on that money because the 320 00:18:13,960 --> 00:18:16,359 Speaker 1: government is implying that we're not going to give you 321 00:18:16,440 --> 00:18:20,080 Speaker 1: a return by saving for a any day. Right. So, 322 00:18:20,119 --> 00:18:22,760 Speaker 1: now when you have an event where you need all 323 00:18:22,840 --> 00:18:25,080 Speaker 1: of these people are going to be unemployed. Right, your 324 00:18:25,119 --> 00:18:27,760 Speaker 1: airline is gonna go broken, everything else, what do you do? 325 00:18:27,880 --> 00:18:30,399 Speaker 1: You go back to the government and instead of letting 326 00:18:30,400 --> 00:18:34,320 Speaker 1: you fail, they inject a bunch of money to continue 327 00:18:34,359 --> 00:18:37,080 Speaker 1: the whole the whole game. That game is in housing, 328 00:18:37,200 --> 00:18:42,000 Speaker 1: it's in everything. So the government has prevented a free 329 00:18:42,000 --> 00:18:46,400 Speaker 1: market society. Yeah, and or it's kind of like going 330 00:18:46,440 --> 00:18:48,879 Speaker 1: back to being kids, like watching Star Trek and they 331 00:18:48,880 --> 00:18:52,000 Speaker 1: could like they could beam themselves to another place or whatever. Right, 332 00:18:52,040 --> 00:18:55,240 Speaker 1: So imagine like if an airline came across some technology 333 00:18:55,240 --> 00:18:56,760 Speaker 1: where you could just beam yourself, you didn't have to 334 00:18:56,800 --> 00:18:59,119 Speaker 1: get an airplane, and people would be able to do 335 00:18:59,160 --> 00:19:01,840 Speaker 1: this for really, really cheap, and the airline see was like, 336 00:19:01,880 --> 00:19:03,720 Speaker 1: oh my gosh, I could put us out of business. 337 00:19:03,960 --> 00:19:05,760 Speaker 1: That could eatually all our profits. And there's really a 338 00:19:05,800 --> 00:19:08,160 Speaker 1: way to monetize it because it's so cheap. So let's 339 00:19:08,200 --> 00:19:11,400 Speaker 1: just use the government to say that that's unsafe, will 340 00:19:11,480 --> 00:19:14,400 Speaker 1: create policies to say that that type of travel is banned, 341 00:19:15,160 --> 00:19:17,480 Speaker 1: and we'll to force people to go in an airplane. 342 00:19:17,560 --> 00:19:22,520 Speaker 1: Maybe that's kind of how it is, You're I'm laughing, 343 00:19:22,600 --> 00:19:26,600 Speaker 1: because yesterday I saw a product demo from I can't 344 00:19:26,600 --> 00:19:28,960 Speaker 1: say what, I can't say who it is and everything else, 345 00:19:29,000 --> 00:19:32,000 Speaker 1: but from a friend of mine to a technology later 346 00:19:32,080 --> 00:19:36,080 Speaker 1: a CEO of a different technology company, and that product 347 00:19:36,119 --> 00:19:39,800 Speaker 1: demo had something that I would say, feels like a 348 00:19:39,840 --> 00:19:46,640 Speaker 1: tele teleporter. Really what zoom is today? Think about think 349 00:19:46,680 --> 00:19:50,320 Speaker 1: about an actual experience that feels totally different and it's 350 00:19:50,440 --> 00:19:53,800 Speaker 1: native to native to a screen. It's so what's coming 351 00:19:54,480 --> 00:19:57,600 Speaker 1: is what's not widely distributed yet, but it is available 352 00:19:57,640 --> 00:20:01,720 Speaker 1: with technology would flow people's minds. Wow, that's incredible. So 353 00:20:02,320 --> 00:20:04,760 Speaker 1: we didn't we didn't plan that UM and we've even 354 00:20:04,840 --> 00:20:08,520 Speaker 1: seen it. So like obviously, if if anybody's watching this channel, 355 00:20:08,560 --> 00:20:10,600 Speaker 1: they know I'm a big proponent of of bitcoin. I 356 00:20:10,640 --> 00:20:12,520 Speaker 1: pound the table on that all the time to fight 357 00:20:12,560 --> 00:20:14,960 Speaker 1: against what the FED is doing UM and what we've 358 00:20:15,000 --> 00:20:20,400 Speaker 1: even seen UM from I mentioned earlier Christine Legarde from 359 00:20:20,440 --> 00:20:23,119 Speaker 1: the ECB, she came out and said that we I 360 00:20:23,160 --> 00:20:25,399 Speaker 1: forget the exact quote, but basically she said that we 361 00:20:25,480 --> 00:20:29,480 Speaker 1: need to stop this UM technology because it's going to 362 00:20:29,720 --> 00:20:35,520 Speaker 1: disrupt the entire financial system. But yes, isn't that the point? 363 00:20:35,880 --> 00:20:38,920 Speaker 1: So there purposely she's even saying it, they're purposely going 364 00:20:38,960 --> 00:20:43,480 Speaker 1: to try to shut down technology. I guess so so 365 00:20:44,280 --> 00:20:48,000 Speaker 1: UM yes, And that's where, like you all of these 366 00:20:48,080 --> 00:20:51,720 Speaker 1: roads again, if you come back to first principles, we 367 00:20:51,800 --> 00:20:54,679 Speaker 1: are going to get into flesh. The only question is 368 00:20:55,200 --> 00:20:59,520 Speaker 1: UM when so so so? So? Right now, I would 369 00:20:59,520 --> 00:21:02,320 Speaker 1: say we have a deflationary environment and the only thing 370 00:21:02,400 --> 00:21:07,040 Speaker 1: stopping that is massive liquidity injections. Most of that liquidity 371 00:21:07,119 --> 00:21:11,640 Speaker 1: injection is going straight into asset prises, bitcoin, gold, housing, 372 00:21:11,760 --> 00:21:15,960 Speaker 1: everything else. So it's driving those up and people in 373 00:21:16,000 --> 00:21:19,840 Speaker 1: those are thinking they're going to go up forever. And 374 00:21:19,840 --> 00:21:24,880 Speaker 1: and so so if we slow you can see what's 375 00:21:24,920 --> 00:21:27,159 Speaker 1: happening in stock market right now. It's bouncing around, and 376 00:21:27,200 --> 00:21:30,320 Speaker 1: it's you see a whole bunch more volatility in the 377 00:21:30,400 --> 00:21:32,960 Speaker 1: US right now, and in the stock market. That's because 378 00:21:32,960 --> 00:21:38,120 Speaker 1: there's no new stimulus. If if technology is creating deflation 379 00:21:38,160 --> 00:21:41,320 Speaker 1: at this rate, then the debt creation has to be 380 00:21:41,520 --> 00:21:45,840 Speaker 1: the amount of stimulus um and it's exponential, right, More 381 00:21:45,880 --> 00:21:51,000 Speaker 1: and more technology is creating that that deflation, then it 382 00:21:51,040 --> 00:21:53,560 Speaker 1: needs to be exponential monetary using. On the other side, 383 00:21:54,160 --> 00:21:58,359 Speaker 1: any any stop in that exponential monetary using or printing 384 00:21:58,400 --> 00:22:03,159 Speaker 1: of money, the whole thing collapses in it in the 385 00:22:03,240 --> 00:22:07,399 Speaker 1: unwind would be so crazy from where we are. Stock 386 00:22:07,440 --> 00:22:10,159 Speaker 1: prices would lose eighty percent of their value. Housing the 387 00:22:10,600 --> 00:22:13,439 Speaker 1: if you think over the last twenty years, to stop deflation, 388 00:22:14,960 --> 00:22:19,560 Speaker 1: trillion dollars of debt was created and and so so 389 00:22:19,640 --> 00:22:23,040 Speaker 1: you had two fifty trillion dollars of debt running an 390 00:22:23,080 --> 00:22:27,600 Speaker 1: eighty trillion dollar global economy. And that was before COVID, right, 391 00:22:27,880 --> 00:22:32,200 Speaker 1: and and so that and trillion of that debt came 392 00:22:32,200 --> 00:22:35,919 Speaker 1: in the last twenty years against that that path. And 393 00:22:35,960 --> 00:22:38,720 Speaker 1: so when I wrote the book, I predicted what would 394 00:22:38,720 --> 00:22:42,399 Speaker 1: happen next, right, and and all of these things any 395 00:22:42,440 --> 00:22:45,879 Speaker 1: blepin growth because because the inflation requires of you after 396 00:22:46,119 --> 00:22:47,680 Speaker 1: you have to keep going, and to do that, you're 397 00:22:47,720 --> 00:22:50,920 Speaker 1: just piling more and more. So four dollars of four 398 00:22:50,920 --> 00:22:54,280 Speaker 1: dollars of debt creation for one dollar of growth that debt, 399 00:22:54,520 --> 00:22:56,360 Speaker 1: that debt. If you run kind of what the Fed 400 00:22:56,640 --> 00:22:59,600 Speaker 1: is doing today and you assume that debt has to 401 00:22:59,600 --> 00:23:05,800 Speaker 1: be paid back, right, then then it's more disinflationary right right, 402 00:23:05,800 --> 00:23:09,280 Speaker 1: because it's not going into useful I think it's going 403 00:23:09,280 --> 00:23:11,480 Speaker 1: into asset prices. It's going into and it has to 404 00:23:11,520 --> 00:23:13,960 Speaker 1: be paid back tomorrow. So taxes are going to go 405 00:23:14,040 --> 00:23:17,040 Speaker 1: way up, right, And so you pulled them in from 406 00:23:17,080 --> 00:23:20,360 Speaker 1: the future. And that's where that we're trapped right now. 407 00:23:20,520 --> 00:23:24,000 Speaker 1: It's such a big problem. And if you let it unwined, 408 00:23:24,080 --> 00:23:27,920 Speaker 1: you have a depression, global depression. And if you keep 409 00:23:27,920 --> 00:23:31,199 Speaker 1: doing if you keep doing it, you have outbreak of 410 00:23:31,240 --> 00:23:35,440 Speaker 1: currency collapse, wars, everything out like it's just it's it's 411 00:23:35,480 --> 00:23:39,160 Speaker 1: really ugly on both sides. Yeah, So we have I 412 00:23:39,160 --> 00:23:42,040 Speaker 1: I see kind of two problems. One the technology, as 413 00:23:42,080 --> 00:23:45,960 Speaker 1: you say, is causing deflation. It's causing things to go down. Um, 414 00:23:45,960 --> 00:23:48,040 Speaker 1: there's charts. I'm sure you've seen them. I've seen them. 415 00:23:48,040 --> 00:23:50,520 Speaker 1: I wish I had them handy, I can put them 416 00:23:50,560 --> 00:23:53,240 Speaker 1: up on the screen. But basically it shows like different 417 00:23:53,280 --> 00:23:58,080 Speaker 1: asset prices and you can see you know, a technology TVs, telephones, 418 00:23:58,119 --> 00:24:02,400 Speaker 1: et cetera, all going down, but anything that the government controls, healthcare, 419 00:24:02,600 --> 00:24:06,240 Speaker 1: education have gone up. And so you have like this 420 00:24:06,240 --> 00:24:08,560 Speaker 1: this is like almost like v shape, where like technology 421 00:24:08,600 --> 00:24:10,679 Speaker 1: is going down and government stuff is going up. So 422 00:24:10,760 --> 00:24:13,120 Speaker 1: you have the technology pushing prices down, as you say, 423 00:24:13,200 --> 00:24:16,200 Speaker 1: causing deflation. But back to what you said about the debt, 424 00:24:16,640 --> 00:24:19,440 Speaker 1: I think there's even a bigger problem because the more 425 00:24:19,680 --> 00:24:22,119 Speaker 1: the bigger that balloon gets, the harder it gets to 426 00:24:22,200 --> 00:24:25,159 Speaker 1: reinflate that balloon. And what happens is in order to 427 00:24:25,240 --> 00:24:27,679 Speaker 1: print a trillion dollars, you have to go through you know, 428 00:24:27,760 --> 00:24:29,720 Speaker 1: government and Congress and all these things to get the 429 00:24:29,760 --> 00:24:33,159 Speaker 1: trillion dollars printed. But a trillion dollars can disappear like 430 00:24:33,240 --> 00:24:36,280 Speaker 1: that someone just a default on bankrupt and like it's 431 00:24:36,320 --> 00:24:39,280 Speaker 1: just gone the count. So it's way easier to get 432 00:24:39,359 --> 00:24:42,520 Speaker 1: rid of it than it's laid it back up and 433 00:24:42,520 --> 00:24:45,720 Speaker 1: and let's let's stay with kind of that for a second, 434 00:24:45,760 --> 00:24:48,360 Speaker 1: and again go back to first principles and ask where 435 00:24:48,480 --> 00:24:52,080 Speaker 1: questions Because everybody thinks, oh, no, real estate always goes up, right, 436 00:24:52,680 --> 00:24:55,960 Speaker 1: ask yourself this, without a hundred and eighty five trillion 437 00:24:56,000 --> 00:24:59,800 Speaker 1: dollars of new money over the last twenty years, what 438 00:25:00,000 --> 00:25:03,120 Speaker 1: would real estate prices be? Well, when you adjust for inflation, 439 00:25:03,160 --> 00:25:06,199 Speaker 1: you see a whole different picture, you see, So if 440 00:25:06,240 --> 00:25:09,400 Speaker 1: you would adjust for the cause of those real estate 441 00:25:09,440 --> 00:25:14,000 Speaker 1: prices going up, you can see them, you can you 442 00:25:14,000 --> 00:25:17,160 Speaker 1: can see what's happening. So we and then the next 443 00:25:17,200 --> 00:25:20,639 Speaker 1: question has to be can you keep doing that? Right? 444 00:25:20,760 --> 00:25:23,160 Speaker 1: Can you keep doing that at that scale? And if 445 00:25:23,200 --> 00:25:26,600 Speaker 1: you can't, then what will what will it look like? 446 00:25:26,640 --> 00:25:30,760 Speaker 1: Because you're right, once those defaults happen, it's just on 447 00:25:30,920 --> 00:25:34,880 Speaker 1: wines really fast. Now, I suspect that the governments are 448 00:25:34,920 --> 00:25:37,400 Speaker 1: not going to let on their watch right now all 449 00:25:37,400 --> 00:25:39,080 Speaker 1: over the world, they're not going to let that happen. 450 00:25:39,760 --> 00:25:43,160 Speaker 1: So what choice do they have? So today the federules 451 00:25:43,200 --> 00:25:46,960 Speaker 1: prohibit kind of helicopter money, m m T. Everything else, 452 00:25:47,000 --> 00:25:49,639 Speaker 1: so you'd be a They has to go to the banks, 453 00:25:49,680 --> 00:25:52,040 Speaker 1: and it kind of trickles down at the top level, 454 00:25:52,680 --> 00:25:56,760 Speaker 1: and and and and and the whole bunch of the 455 00:25:56,800 --> 00:26:02,440 Speaker 1: population who because housing prices as are giving an example, sorry, 456 00:26:02,560 --> 00:26:07,320 Speaker 1: before that, my my lakehouse that I'm currently in seven 457 00:26:07,359 --> 00:26:10,679 Speaker 1: years ago, I tore down my small house that was 458 00:26:10,760 --> 00:26:14,760 Speaker 1: here seven years ago. That house rented in the off 459 00:26:14,800 --> 00:26:17,080 Speaker 1: season for six hundred dollars a month, and it was 460 00:26:17,119 --> 00:26:21,040 Speaker 1: hard to get renters for six dollars a month. Down 461 00:26:21,080 --> 00:26:25,159 Speaker 1: the block, there's another cabinet looks exactly like that that 462 00:26:25,760 --> 00:26:30,440 Speaker 1: is now rents for fifteen a month seven years later. Yeah, So, 463 00:26:30,440 --> 00:26:34,520 Speaker 1: so what that means and house prices have gone crazy 464 00:26:34,560 --> 00:26:37,320 Speaker 1: and everything else, but what that means to to if 465 00:26:37,359 --> 00:26:41,240 Speaker 1: your wages haven't gone up by double more than double, 466 00:26:42,320 --> 00:26:44,760 Speaker 1: lost purchasing power. And there's a whole bunch of people 467 00:26:45,160 --> 00:26:47,760 Speaker 1: that don't have assets that are in that that are 468 00:26:47,800 --> 00:26:50,560 Speaker 1: in that camp. And so it's pretty logical that they 469 00:26:50,560 --> 00:26:54,000 Speaker 1: would come and say what's going on and vote for 470 00:26:54,080 --> 00:26:57,920 Speaker 1: people who will say I will give you money. Yeah, yeah, 471 00:26:58,119 --> 00:27:00,720 Speaker 1: I think that's what you just said. They're like purchasing power. 472 00:27:00,760 --> 00:27:03,120 Speaker 1: And I think if if people could look more in 473 00:27:03,240 --> 00:27:06,800 Speaker 1: terms of purchasing power as opposed to an asset price 474 00:27:06,920 --> 00:27:09,360 Speaker 1: in their in their fee currency. So you know, in America, 475 00:27:09,440 --> 00:27:11,679 Speaker 1: we're looking at all priced in US dollars. In Canada 476 00:27:11,760 --> 00:27:13,760 Speaker 1: maybe U S dollars or Canadian dollars or whatever. But 477 00:27:14,160 --> 00:27:15,399 Speaker 1: when you only look at it in the v a 478 00:27:15,480 --> 00:27:18,679 Speaker 1: currency is being inflated, you think, oh, my house went 479 00:27:18,760 --> 00:27:22,399 Speaker 1: up and I made money or whatever. But when you 480 00:27:22,480 --> 00:27:26,119 Speaker 1: look at it in purchasing power, which we started out 481 00:27:26,160 --> 00:27:27,880 Speaker 1: with saying do you want to buy more or less 482 00:27:27,920 --> 00:27:31,359 Speaker 1: in the future, you see a whole a totally different picture. So, 483 00:27:31,800 --> 00:27:35,639 Speaker 1: so all inflation is is it's a hidden tax. Yeah. So, 484 00:27:36,040 --> 00:27:39,000 Speaker 1: so if governments to carry on the services governments have 485 00:27:39,840 --> 00:27:43,600 Speaker 1: without inflation, they would have to charge you the real taxes, right, 486 00:27:44,040 --> 00:27:46,760 Speaker 1: and you would you would say government is too big, 487 00:27:46,960 --> 00:27:49,080 Speaker 1: it needs to be smaller because you wouldn't put up 488 00:27:49,119 --> 00:27:52,119 Speaker 1: with that that type of tax, right right, And so 489 00:27:52,280 --> 00:27:58,359 Speaker 1: they hide a hidden tax and inflation. Yeah. But the 490 00:27:58,480 --> 00:28:02,080 Speaker 1: problem with that hidden tax is it's on society is 491 00:28:02,119 --> 00:28:06,000 Speaker 1: most unable to pay, yeah, right, and so so the 492 00:28:06,640 --> 00:28:09,879 Speaker 1: But when you think about this, how crazy is it 493 00:28:10,720 --> 00:28:15,399 Speaker 1: that the cure that the society is racing, especially the 494 00:28:15,480 --> 00:28:18,320 Speaker 1: people left out, are racing to socialism as a cure 495 00:28:20,000 --> 00:28:23,840 Speaker 1: for for the same thing that created it like you. 496 00:28:24,160 --> 00:28:26,520 Speaker 1: So governments are creating as st price in flesh, and 497 00:28:26,520 --> 00:28:29,399 Speaker 1: they're creating all of the prices to go out, and 498 00:28:29,440 --> 00:28:31,879 Speaker 1: then they need more money that they don't have to 499 00:28:32,000 --> 00:28:34,720 Speaker 1: give people a bunch of money to pay for the 500 00:28:35,400 --> 00:28:37,720 Speaker 1: pay for the same prices that we're artificially inflated in 501 00:28:37,760 --> 00:28:42,560 Speaker 1: the first place. Right, So to me, it's madness. And 502 00:28:42,640 --> 00:28:45,200 Speaker 1: I don't see how people could want to vote for 503 00:28:45,320 --> 00:28:47,640 Speaker 1: more of the problem that caused it in the first place. 504 00:28:47,720 --> 00:28:50,160 Speaker 1: But they obviously are. Why do you think that is 505 00:28:51,040 --> 00:28:54,239 Speaker 1: because because they haven't gone They haven't they're not as 506 00:28:54,320 --> 00:28:56,680 Speaker 1: deep in this as you are, right, they're not as 507 00:28:57,120 --> 00:29:01,680 Speaker 1: That's that's one of the things where what we're talking 508 00:29:01,720 --> 00:29:05,600 Speaker 1: about right now, in inflation, it goes against every natural 509 00:29:06,160 --> 00:29:09,000 Speaker 1: fiber ever being because we were taught something different. Well, 510 00:29:09,040 --> 00:29:10,960 Speaker 1: it goes against not it go doesn't go against our 511 00:29:11,080 --> 00:29:14,920 Speaker 1: natural being, it goes against our education. Our education, right 512 00:29:15,000 --> 00:29:17,080 Speaker 1: and instead of and a lot of times you build 513 00:29:17,160 --> 00:29:20,360 Speaker 1: foundations of knowledge and everything else is built on top 514 00:29:20,400 --> 00:29:22,480 Speaker 1: of that and everything else, and you don't question your 515 00:29:22,520 --> 00:29:26,120 Speaker 1: foundations of knowledge very often, right, And so if you're 516 00:29:26,160 --> 00:29:32,160 Speaker 1: not intellectually curious enough to say, is this true? Right, then, 517 00:29:33,080 --> 00:29:37,480 Speaker 1: then you'll just believe. It's easier to believe somebody like 518 00:29:37,640 --> 00:29:41,400 Speaker 1: Andrew Yang or something saying, there are the problem, we 519 00:29:41,520 --> 00:29:43,760 Speaker 1: need to give you money. It's just easier because it 520 00:29:44,000 --> 00:29:48,720 Speaker 1: matches your picture of Instead of questioning should we have inflation? 521 00:29:48,760 --> 00:29:51,000 Speaker 1: Should we not have inflation, which is a hard thing 522 00:29:51,080 --> 00:29:53,640 Speaker 1: to go go down for most people, it's easy to 523 00:29:54,040 --> 00:29:56,840 Speaker 1: build on top of a narrative that people already understand. 524 00:29:57,640 --> 00:30:01,120 Speaker 1: It's actually the same thing that create such an opportunity 525 00:30:01,160 --> 00:30:04,640 Speaker 1: to entrepreneurs to question why are they doing it that way? Right? 526 00:30:05,760 --> 00:30:08,520 Speaker 1: That's it's exactly the same thing that creates creative destruction 527 00:30:08,600 --> 00:30:11,320 Speaker 1: because somebody, an entrepreneur, looks at the world and says, 528 00:30:11,680 --> 00:30:15,120 Speaker 1: that makes no sense anymore. Why am I carrying this thing? 529 00:30:15,160 --> 00:30:19,600 Speaker 1: Why don't I just put in a wheelbarrel? Exactly. Yeah, 530 00:30:19,960 --> 00:30:21,760 Speaker 1: that's a great point. And uh, it's one that I 531 00:30:21,840 --> 00:30:23,680 Speaker 1: do just want to just drive home because I I 532 00:30:24,080 --> 00:30:27,560 Speaker 1: believe in our natural being. I believe that we're all 533 00:30:27,800 --> 00:30:31,120 Speaker 1: driven towards deflation. We're all looking for an easier way 534 00:30:31,200 --> 00:30:34,440 Speaker 1: to do things. From the beginning of time, a division 535 00:30:34,480 --> 00:30:36,320 Speaker 1: of labor. Hey you do this, I'll do this. Let's 536 00:30:36,320 --> 00:30:38,360 Speaker 1: work together, right, like, hey, let me put in a 537 00:30:38,400 --> 00:30:41,560 Speaker 1: wheebarrow Like I said, so, I think naturally we all 538 00:30:41,680 --> 00:30:46,240 Speaker 1: gravitate towards free trade, free market, and deflationary things. But 539 00:30:46,400 --> 00:30:49,880 Speaker 1: it's the education system that has continued to push this 540 00:30:50,080 --> 00:30:53,920 Speaker 1: narrative indoctrination, if you want to call it that, I 541 00:30:54,000 --> 00:30:57,320 Speaker 1: guess because their system demands it depends on it. And 542 00:30:58,720 --> 00:31:02,920 Speaker 1: I would say most of those people, even at the 543 00:31:03,000 --> 00:31:05,960 Speaker 1: top that you're saying, when it's easy to say that 544 00:31:06,160 --> 00:31:08,720 Speaker 1: group of people at the top, most of those people 545 00:31:09,000 --> 00:31:13,560 Speaker 1: haven't asked this question. A very senior economists who is 546 00:31:13,600 --> 00:31:17,280 Speaker 1: in this circle right and everything else? Who's friends are 547 00:31:17,280 --> 00:31:20,640 Speaker 1: all of the people that monetorization, everything else read my 548 00:31:20,720 --> 00:31:24,360 Speaker 1: book called me and said, how do you see? How? 549 00:31:24,480 --> 00:31:27,560 Speaker 1: How did you see something that the entire world miss misses, 550 00:31:27,800 --> 00:31:33,560 Speaker 1: including I question everything that I teach and economics question 551 00:31:34,640 --> 00:31:36,280 Speaker 1: and how did you see? How did you see it? 552 00:31:36,600 --> 00:31:40,720 Speaker 1: But that's the thing. It's natural for somebody outside the 553 00:31:40,800 --> 00:31:44,960 Speaker 1: system to be able to uh, to quite to question 554 00:31:45,040 --> 00:31:49,240 Speaker 1: it because you're you're not you haven't been indoctrinated inside 555 00:31:49,320 --> 00:31:52,200 Speaker 1: something that you So you're asking you're asking a deeper question, 556 00:31:52,440 --> 00:31:55,040 Speaker 1: looking for the true answer instead of looking to build 557 00:31:55,080 --> 00:31:57,880 Speaker 1: on top of that foundation and knowledge. Yeah, that's a 558 00:31:57,920 --> 00:32:00,760 Speaker 1: great point. I want to talk about, as you said, 559 00:32:00,800 --> 00:32:03,240 Speaker 1: the unwind and it not being smooth and and not 560 00:32:03,360 --> 00:32:05,320 Speaker 1: being good. I want to talk about how you see 561 00:32:05,400 --> 00:32:07,720 Speaker 1: this kind of playing out. But before we do, I 562 00:32:07,840 --> 00:32:11,640 Speaker 1: just want to say one other thing is that, UM, 563 00:32:12,360 --> 00:32:14,400 Speaker 1: you know we talk about I think people have been 564 00:32:14,400 --> 00:32:16,800 Speaker 1: indoctrinated and they've been just trained to just kind of 565 00:32:16,840 --> 00:32:18,520 Speaker 1: look at it one way. And then Andrew jankas, I'm 566 00:32:18,520 --> 00:32:20,400 Speaker 1: gonna give a thousand bucks a month, and everyone says, yes, 567 00:32:20,440 --> 00:32:22,320 Speaker 1: sign me up. I'll take the thousand bucks a month. 568 00:32:22,680 --> 00:32:24,120 Speaker 1: I don't believe in that, but I mean, if we're 569 00:32:24,120 --> 00:32:25,680 Speaker 1: gonna pass it out, I guess then something to me 570 00:32:25,800 --> 00:32:29,920 Speaker 1: as well. Right. But UM, it seems that today, UM 571 00:32:30,680 --> 00:32:34,240 Speaker 1: you also mentioned abundance, people don't have this abundance mindset. 572 00:32:34,280 --> 00:32:38,640 Speaker 1: People have the scarcity mindset. And so UM it seems 573 00:32:38,720 --> 00:32:43,520 Speaker 1: that with this deflation, UM, jobs get lost. I can't 574 00:32:43,600 --> 00:32:47,240 Speaker 1: pick cotton anymore because now machine does it, UM, and 575 00:32:47,360 --> 00:32:50,200 Speaker 1: so whatever. And yes, there will be more jobs created, 576 00:32:50,240 --> 00:32:51,920 Speaker 1: and you said there was a debate about that, But 577 00:32:52,040 --> 00:32:54,880 Speaker 1: it requires me or that person to go learn new 578 00:32:54,960 --> 00:32:57,840 Speaker 1: skills and I have to do something different, have to 579 00:32:57,960 --> 00:33:00,720 Speaker 1: try harder, and it's so much easier if I just 580 00:33:00,800 --> 00:33:02,240 Speaker 1: stay home and watch TV and they just give me 581 00:33:02,280 --> 00:33:04,920 Speaker 1: a thousand bucks. And it seems that we've had this 582 00:33:05,160 --> 00:33:09,000 Speaker 1: massive shift where we have a large percentage of the 583 00:33:09,040 --> 00:33:11,680 Speaker 1: population now that doesn't want to learn new skills or 584 00:33:11,680 --> 00:33:13,240 Speaker 1: figure out how to offer the good and service to 585 00:33:13,280 --> 00:33:15,479 Speaker 1: the economy. They wanted to be taken care of. I mean, 586 00:33:15,560 --> 00:33:17,800 Speaker 1: do you see that as like a big push back 587 00:33:18,040 --> 00:33:21,040 Speaker 1: to this whole system? Isn't that an irony that we're 588 00:33:21,040 --> 00:33:24,680 Speaker 1: talking about this in the United States, which went through 589 00:33:25,200 --> 00:33:27,920 Speaker 1: you and I growing up Russia and the United States, 590 00:33:28,080 --> 00:33:34,360 Speaker 1: I know, and unbelievable, And it's unbelievable that that essentially 591 00:33:34,760 --> 00:33:40,000 Speaker 1: the United States wants to be Russia. Right when when 592 00:33:40,520 --> 00:33:44,080 Speaker 1: when you have when when you know what history looks like, 593 00:33:44,200 --> 00:33:47,520 Speaker 1: they're and and a state can't manage is effectively there's 594 00:33:47,560 --> 00:33:50,880 Speaker 1: only two ways to manage that many people globally, right, 595 00:33:52,040 --> 00:33:58,160 Speaker 1: free markets, which or or control essentially or the biggest 596 00:33:58,200 --> 00:34:03,520 Speaker 1: thug right, and and only two ways um and so 597 00:34:04,760 --> 00:34:09,360 Speaker 1: neither is perfect, right, But so one thing about capitalism 598 00:34:10,040 --> 00:34:13,439 Speaker 1: is it does if you just go kind of around 599 00:34:13,440 --> 00:34:17,840 Speaker 1: the very ends, right, capitalism probably requires some sort of 600 00:34:17,960 --> 00:34:22,720 Speaker 1: checks and balances, so uh to stop it from running 601 00:34:22,760 --> 00:34:26,680 Speaker 1: away those checks and balances. On the other side is 602 00:34:26,719 --> 00:34:29,239 Speaker 1: where U, B I and socialism go to write that 603 00:34:29,400 --> 00:34:33,160 Speaker 1: looks at community and it robs from capitalism. And because 604 00:34:33,360 --> 00:34:35,839 Speaker 1: nobody's asking where it does that. If you're if you're 605 00:34:35,920 --> 00:34:40,040 Speaker 1: ruining the innovative potential of the free market by by 606 00:34:40,080 --> 00:34:44,239 Speaker 1: saying everything goes to government, it can government outcompete the 607 00:34:44,280 --> 00:34:48,680 Speaker 1: free market? Right? And if they can't, your your economy dives. 608 00:34:48,920 --> 00:34:51,080 Speaker 1: And where does the money come from the people that 609 00:34:51,160 --> 00:34:52,719 Speaker 1: the government is saying, well, I'm going to give you 610 00:34:52,840 --> 00:34:57,040 Speaker 1: this money. Um. So, So that's that's the piece that 611 00:34:57,400 --> 00:35:01,440 Speaker 1: it's unbelievable that the US for so long and they 612 00:35:01,560 --> 00:35:04,799 Speaker 1: know what it looks like, right, because we've already played 613 00:35:04,840 --> 00:35:09,120 Speaker 1: this game around the world. Yeah, it's it's interesting. I'm 614 00:35:09,200 --> 00:35:12,440 Speaker 1: I'm I'm forty five. So I grew up kind of 615 00:35:12,800 --> 00:35:14,920 Speaker 1: seeing that Cold War play out. I saw, you know, 616 00:35:15,040 --> 00:35:18,399 Speaker 1: East West Berlin play out. We've seen obviously South Korea 617 00:35:18,440 --> 00:35:21,160 Speaker 1: North Korea play out. Um And so yeah, for me 618 00:35:21,360 --> 00:35:23,759 Speaker 1: to see people wanting that, I just I can't believe it. 619 00:35:23,800 --> 00:35:27,560 Speaker 1: I remember people coming in Cuba trying to get to 620 00:35:27,680 --> 00:35:30,400 Speaker 1: Florida and dying. You know, I'm like shark infested waters. 621 00:35:30,440 --> 00:35:32,920 Speaker 1: I can't believe it? Um, so can I? Can I 622 00:35:33,080 --> 00:35:36,239 Speaker 1: jump in there for one second? And this is this 623 00:35:36,480 --> 00:35:41,480 Speaker 1: is actually, um, this is actually one of those sailing points. 624 00:35:42,480 --> 00:35:45,640 Speaker 1: If you, you and I grew up in that world. 625 00:35:45,719 --> 00:35:47,799 Speaker 1: We saw, We saw that. But a lot of people 626 00:35:47,880 --> 00:35:51,279 Speaker 1: that are wanting you b I didn't. They haven't. They 627 00:35:51,320 --> 00:35:53,919 Speaker 1: haven't read history of what it looks like. They haven't said, 628 00:35:53,960 --> 00:35:57,200 Speaker 1: they haven't studied economics, they don't look you know what 629 00:35:57,320 --> 00:36:00,200 Speaker 1: free markets look like. And the truth is they don't 630 00:36:00,239 --> 00:36:03,759 Speaker 1: live in a free market. You have manipulated chrony capitalism 631 00:36:04,120 --> 00:36:08,120 Speaker 1: that's hurting them, right, and so in an environment where 632 00:36:08,120 --> 00:36:09,719 Speaker 1: you don't have a free market is a free market 633 00:36:09,800 --> 00:36:13,480 Speaker 1: for the rich, right, and and and and so it's 634 00:36:13,560 --> 00:36:16,600 Speaker 1: it's a managed market for where your stimulate government stimula. 635 00:36:17,600 --> 00:36:20,879 Speaker 1: A natural cause is for those people to say there 636 00:36:20,960 --> 00:36:24,120 Speaker 1: has to be a better way. So somebody when somebody 637 00:36:24,200 --> 00:36:28,000 Speaker 1: waves a magic one and saying hey, I'm going to 638 00:36:28,120 --> 00:36:29,680 Speaker 1: give I'm going to give you a better way that 639 00:36:29,800 --> 00:36:33,319 Speaker 1: fits with your knowledge, you'll take it and you believe 640 00:36:33,360 --> 00:36:36,280 Speaker 1: it all day long. Like how how many people believe 641 00:36:36,360 --> 00:36:39,799 Speaker 1: that simple solution, which is not a solution at all 642 00:36:40,480 --> 00:36:45,120 Speaker 1: when they in chaos is it is staggnerant and and 643 00:36:45,200 --> 00:36:47,440 Speaker 1: and and I just continue just to say over and 644 00:36:47,480 --> 00:36:49,720 Speaker 1: over it's just a complete failure of the education system, 645 00:36:50,200 --> 00:36:52,000 Speaker 1: you know, just a complete filure. You know, when when 646 00:36:52,120 --> 00:36:55,880 Speaker 1: you're a business owner, business the founder, and etcetera. You 647 00:36:55,960 --> 00:36:58,759 Speaker 1: solve problems, right, that's what business owners do. And uh, 648 00:36:59,160 --> 00:37:02,120 Speaker 1: and what we typically do is we look for examples 649 00:37:02,160 --> 00:37:04,120 Speaker 1: of what's working and what's not working, and then we 650 00:37:04,239 --> 00:37:06,560 Speaker 1: do more of what works and less of what doesn't work. 651 00:37:07,080 --> 00:37:09,360 Speaker 1: And so we'd call that like looking So instead of 652 00:37:09,440 --> 00:37:10,839 Speaker 1: just looking at a problem and how can we solve 653 00:37:10,840 --> 00:37:12,200 Speaker 1: the problem? How can we solve the problem, you would 654 00:37:12,239 --> 00:37:15,040 Speaker 1: look for a bright spot, where is it working somewhere else? 655 00:37:15,920 --> 00:37:18,640 Speaker 1: And so when you look and see whatever, I don't know, 656 00:37:18,719 --> 00:37:22,640 Speaker 1: two thirds of the world lives in extreme poverty, and 657 00:37:23,120 --> 00:37:25,399 Speaker 1: one or two nations have been able to lift people 658 00:37:25,440 --> 00:37:28,719 Speaker 1: out of poverty and become inventors and creators. You would 659 00:37:28,760 --> 00:37:31,320 Speaker 1: just look at that, well, why why did they become 660 00:37:31,360 --> 00:37:35,040 Speaker 1: in creators? And why are these stuck in third world countries? 661 00:37:35,080 --> 00:37:37,360 Speaker 1: And you would just look at the systems It just 662 00:37:37,440 --> 00:37:40,320 Speaker 1: seems so obvious. But again, I guess the education system 663 00:37:40,360 --> 00:37:44,040 Speaker 1: just blinds people to that. Yeah, or or or When 664 00:37:44,120 --> 00:37:47,279 Speaker 1: people can't pay their rent and feed their families, they 665 00:37:47,360 --> 00:37:49,440 Speaker 1: look for easy narratives. Look look at what happened in 666 00:37:49,480 --> 00:37:51,920 Speaker 1: the Romer Republic. That was a rise of Hitler. Right, 667 00:37:52,840 --> 00:37:56,400 Speaker 1: it's it's natural. It's a totally natural phenomenon that people 668 00:37:56,440 --> 00:37:59,480 Speaker 1: are looking for an answer that fits with their narrative. 669 00:37:59,600 --> 00:38:05,560 Speaker 1: And so um again, these these systems are giant systems 670 00:38:05,640 --> 00:38:09,200 Speaker 1: that have feedback loops and cause unintended consequences, and people 671 00:38:09,200 --> 00:38:13,000 Speaker 1: aren't driving into the unintended consequences on either side of 672 00:38:13,040 --> 00:38:19,800 Speaker 1: the aisle. Right, So so so on on in your economy, 673 00:38:19,960 --> 00:38:24,279 Speaker 1: in a two party system, right, um uh, you have 674 00:38:24,840 --> 00:38:29,200 Speaker 1: two sides yelling at each other, screaming, and camps developing 675 00:38:29,239 --> 00:38:33,840 Speaker 1: on both sides of that, both unaware that they're sitting 676 00:38:33,880 --> 00:38:36,560 Speaker 1: on top of a system that there's nothing they can 677 00:38:36,640 --> 00:38:39,960 Speaker 1: do to keep it going. One side says we're going 678 00:38:40,320 --> 00:38:42,360 Speaker 1: we're going to keep a free market, and it's not 679 00:38:42,480 --> 00:38:45,759 Speaker 1: a free market, right, And the other side says we're 680 00:38:45,760 --> 00:38:48,560 Speaker 1: going to give you money, right and not create more 681 00:38:48,600 --> 00:38:51,640 Speaker 1: and more socialism. So there you have socialism for the 682 00:38:51,760 --> 00:38:54,160 Speaker 1: rich on one side, socialism for the poor on on 683 00:38:54,280 --> 00:38:57,880 Speaker 1: the other, and in both unaware that there's been a 684 00:38:57,920 --> 00:39:01,560 Speaker 1: structural change to how a on them is need to run. Yeah, 685 00:39:01,719 --> 00:39:05,240 Speaker 1: and they're preventing that structural change from happening and causing 686 00:39:05,520 --> 00:39:08,000 Speaker 1: all of the things, all of the divide of society 687 00:39:08,920 --> 00:39:12,520 Speaker 1: that they don't want. Yeah. And and it really comes 688 00:39:12,560 --> 00:39:14,840 Speaker 1: down just that education, which is why you write that 689 00:39:14,960 --> 00:39:17,279 Speaker 1: book The Price of Tomorrow, which I recommend everyone go get. 690 00:39:17,360 --> 00:39:20,399 Speaker 1: It's why I do my YouTube videos as well. Um 691 00:39:20,800 --> 00:39:23,680 Speaker 1: I want to talk about how this plays out then, 692 00:39:23,840 --> 00:39:27,040 Speaker 1: And as you said, like the great Unwined you know, 693 00:39:27,120 --> 00:39:29,240 Speaker 1: I was just thinking though before as you were talking. 694 00:39:30,000 --> 00:39:31,600 Speaker 1: One one way that I look at it and I 695 00:39:31,640 --> 00:39:33,760 Speaker 1: think people can maybe kind of put this into relation. 696 00:39:33,920 --> 00:39:36,719 Speaker 1: Is that like a free market, as you kind of said, 697 00:39:36,760 --> 00:39:39,600 Speaker 1: it's it's not always nice. I could spend a lot 698 00:39:39,640 --> 00:39:41,360 Speaker 1: of time and effort and money to build a product 699 00:39:41,440 --> 00:39:42,640 Speaker 1: and take it to the market and the market may 700 00:39:42,680 --> 00:39:45,840 Speaker 1: not want it. Yeah, that's not nice, but it is 701 00:39:45,880 --> 00:39:48,960 Speaker 1: what it is. Um. I look at it like imagine 702 00:39:50,400 --> 00:39:55,480 Speaker 1: saying that it's that competition, what that entrepreneurs do that 703 00:39:55,800 --> 00:40:01,080 Speaker 1: kind of yield asymmetric debts. Right if you're that is 704 00:40:01,200 --> 00:40:04,839 Speaker 1: the core of innovation. Yep, right, it's that risk group 705 00:40:04,920 --> 00:40:09,200 Speaker 1: turned profile, that having to invent something that really works 706 00:40:09,239 --> 00:40:12,799 Speaker 1: for other people and and having everything on the line. 707 00:40:12,960 --> 00:40:17,440 Speaker 1: That is the core of innovation. Without Without that, innovation 708 00:40:17,520 --> 00:40:20,719 Speaker 1: stops and it's a matter of only going to the 709 00:40:20,800 --> 00:40:24,360 Speaker 1: market with what people want, what solves their needs and problems. 710 00:40:24,400 --> 00:40:27,080 Speaker 1: So people think business owners are greedy. Well, a business 711 00:40:27,120 --> 00:40:30,520 Speaker 1: owner only succeeds by solving needs and problems of others, 712 00:40:30,880 --> 00:40:34,120 Speaker 1: not themselves, of others. And if if it's not solving 713 00:40:34,200 --> 00:40:36,440 Speaker 1: enough needs and problems, it doesn't succeed, I need to 714 00:40:36,480 --> 00:40:40,040 Speaker 1: go back. It does exactly. Yeah, but I was just 715 00:40:40,120 --> 00:40:43,840 Speaker 1: thinking about like nature again, these are natural laws, right, 716 00:40:43,920 --> 00:40:46,720 Speaker 1: So like in nature, you imagine like an animal, a lion, 717 00:40:46,880 --> 00:40:49,800 Speaker 1: right if you will, and or whatever whatever kind of animal. 718 00:40:50,120 --> 00:40:53,520 Speaker 1: And uh, in nature, it's not nice. They may not 719 00:40:53,800 --> 00:40:56,000 Speaker 1: have food for a few days, they might get eaten, 720 00:40:56,520 --> 00:40:59,040 Speaker 1: they may not have a but put they're free to 721 00:40:59,160 --> 00:41:01,960 Speaker 1: live their life. We could just put that animal in 722 00:41:02,000 --> 00:41:04,560 Speaker 1: a cage at the zoo, make sure they're safe from 723 00:41:05,320 --> 00:41:08,799 Speaker 1: from predators, give them one meal a day, and now 724 00:41:08,880 --> 00:41:11,000 Speaker 1: they're safe and they have a meal, but they live 725 00:41:11,040 --> 00:41:14,640 Speaker 1: in a cage. That's actually really good. I think that's 726 00:41:14,680 --> 00:41:16,960 Speaker 1: a really good analogy because when when you when you 727 00:41:17,080 --> 00:41:20,319 Speaker 1: say free markets or managed economy, that's what you're saying. 728 00:41:20,360 --> 00:41:23,239 Speaker 1: You live in a cage under somebody else's control, or 729 00:41:23,320 --> 00:41:26,359 Speaker 1: you live in a free market. Both sides which one 730 00:41:26,440 --> 00:41:31,000 Speaker 1: is worse, right, So, so both both sides have have 731 00:41:31,880 --> 00:41:34,279 Speaker 1: pros and cons and there's just more pros and a 732 00:41:34,360 --> 00:41:37,200 Speaker 1: free market. Well, the problem is and and uh, you know, 733 00:41:37,400 --> 00:41:39,839 Speaker 1: most of the world probably wants now to release all 734 00:41:39,880 --> 00:41:41,880 Speaker 1: the animals and the zoos and whatnot, right, and so 735 00:41:42,239 --> 00:41:44,040 Speaker 1: I think if you put it in as terms, but 736 00:41:44,160 --> 00:41:46,680 Speaker 1: the problem is is that, um, you don't want to 737 00:41:46,719 --> 00:41:49,240 Speaker 1: take a wild animal and put it into a cage, 738 00:41:49,320 --> 00:41:52,200 Speaker 1: an animal that's been free and then put into a cage. 739 00:41:52,360 --> 00:41:54,840 Speaker 1: But you also can't take animals that have been raised 740 00:41:54,960 --> 00:41:59,120 Speaker 1: in cages and put them back into the wild. So 741 00:41:59,640 --> 00:42:02,160 Speaker 1: that's where we at because what ends up happening is 742 00:42:02,280 --> 00:42:04,960 Speaker 1: and that's actually that's why that analogy is probably useful 743 00:42:05,480 --> 00:42:09,080 Speaker 1: because if if you haven't managed society in a cage, 744 00:42:10,239 --> 00:42:14,000 Speaker 1: you lose company, you lose competitive edge for you. That's 745 00:42:14,160 --> 00:42:16,719 Speaker 1: that's where you're taking the money from to put into 746 00:42:16,719 --> 00:42:20,279 Speaker 1: the managed economy, and there is no competition anymore, so 747 00:42:20,760 --> 00:42:22,719 Speaker 1: you lose that competitive edge. You don't have to be 748 00:42:22,800 --> 00:42:25,719 Speaker 1: a competitive economy. That's what we're Yeah, and they just 749 00:42:25,760 --> 00:42:28,719 Speaker 1: can they can't go back to the wild again. So 750 00:42:29,000 --> 00:42:30,799 Speaker 1: so that leads me to the point of the grade 751 00:42:30,840 --> 00:42:32,160 Speaker 1: and Wind. I know, we've got to wrap this up, 752 00:42:32,239 --> 00:42:34,440 Speaker 1: so we'll finish on that. But so how do you 753 00:42:34,560 --> 00:42:37,759 Speaker 1: see this plane out? I mean, technology wins. You said 754 00:42:37,760 --> 00:42:40,200 Speaker 1: it could be very disruptive. I mean, is there an 755 00:42:40,280 --> 00:42:42,840 Speaker 1: easy way to transition out of the system that we 756 00:42:42,960 --> 00:42:46,080 Speaker 1: have into this new system? Or when I wrote the book, 757 00:42:46,080 --> 00:42:50,000 Speaker 1: I was hopeful yes. And remember the book came up 758 00:42:50,080 --> 00:42:54,440 Speaker 1: just before, so it predicts all these events and what 759 00:42:54,600 --> 00:42:59,720 Speaker 1: happens next, right, Um, But and it came out January 760 00:42:59,840 --> 00:43:02,560 Speaker 1: and January and then COVID hit and COVID was a 761 00:43:02,840 --> 00:43:06,480 Speaker 1: great accelerator of the trends I'm talking about, right, So, 762 00:43:06,960 --> 00:43:10,160 Speaker 1: so in response, what my hope was is that you 763 00:43:10,200 --> 00:43:15,480 Speaker 1: could have policy discussions that would manage that on wind 764 00:43:16,200 --> 00:43:19,880 Speaker 1: right in a slow way, and allow that to happen 765 00:43:20,200 --> 00:43:24,800 Speaker 1: and save currencies. Since COVID accelerated technology, right, So you know, 766 00:43:24,880 --> 00:43:27,680 Speaker 1: what's happening online where the rate of growth online and technology, 767 00:43:27,719 --> 00:43:31,160 Speaker 1: all the technology companies are actually winners in this, all 768 00:43:31,280 --> 00:43:35,880 Speaker 1: hitting records in this well, there's all this unemployment. Technology 769 00:43:36,000 --> 00:43:38,120 Speaker 1: is a huge winner of this, so it excels. It's 770 00:43:38,120 --> 00:43:43,400 Speaker 1: accelerated the trend. Also, because it's accelerated trend, it's accelerated 771 00:43:43,480 --> 00:43:47,440 Speaker 1: government's response. So the amount of easing, the amount of 772 00:43:47,520 --> 00:43:50,880 Speaker 1: debt creation, amount of everything else, essentially making the balloon bigger, 773 00:43:52,080 --> 00:43:58,560 Speaker 1: is so outrageous today that that the governments, all governments 774 00:43:58,800 --> 00:44:01,399 Speaker 1: are forced onto this path that's only going to get worse. 775 00:44:01,640 --> 00:44:04,520 Speaker 1: So they will, so you will see way more stimulus. 776 00:44:05,280 --> 00:44:11,200 Speaker 1: You'll see you'll see eventually the FED kind of the treasure, 777 00:44:11,200 --> 00:44:13,839 Speaker 1: you'll bypass the fret FED and you'll get helicopter money. 778 00:44:14,640 --> 00:44:17,320 Speaker 1: So you without without that right now, you're going to 779 00:44:17,440 --> 00:44:20,400 Speaker 1: get more deflation and it's going to accelerate, and that 780 00:44:20,520 --> 00:44:22,440 Speaker 1: deflation is going to accelerate, and you're gonna have this 781 00:44:24,160 --> 00:44:27,880 Speaker 1: inequality that's building even faster than it's building today. So 782 00:44:28,000 --> 00:44:31,080 Speaker 1: at some point you and you can expect rule changes, 783 00:44:31,160 --> 00:44:33,839 Speaker 1: not just the FED, but globally at all the where 784 00:44:34,160 --> 00:44:38,759 Speaker 1: there's direct bypasses of the banking institutions where money goes 785 00:44:38,800 --> 00:44:43,400 Speaker 1: directly to citizens, right, and at that point you can 786 00:44:43,480 --> 00:44:48,160 Speaker 1: expect hyper inflation where your where your wheelbarrows fow of money. Now, 787 00:44:48,239 --> 00:44:50,360 Speaker 1: it might take some time to do that, right because 788 00:44:50,600 --> 00:44:55,200 Speaker 1: because politicians cannot do it right. But you're on a 789 00:44:55,280 --> 00:44:57,600 Speaker 1: path to at some point the currencies are going to 790 00:44:57,640 --> 00:45:01,040 Speaker 1: be totally destroyed and then on the other side of 791 00:45:01,120 --> 00:45:05,160 Speaker 1: that you're gonna have deflation. Right. So so if you 792 00:45:05,320 --> 00:45:09,560 Speaker 1: think about where your bets are placed in that it's you. 793 00:45:09,960 --> 00:45:13,040 Speaker 1: You have to diversify your portfolio because it's really ugly 794 00:45:13,120 --> 00:45:15,560 Speaker 1: on this people are going to be completely wiped out. 795 00:45:16,040 --> 00:45:17,680 Speaker 1: If you have if you have cash and you go 796 00:45:17,760 --> 00:45:22,279 Speaker 1: to hyper inflation, your cash is worthless. If you if 797 00:45:22,360 --> 00:45:26,799 Speaker 1: you have um, if you have stocks or or real 798 00:45:26,920 --> 00:45:29,160 Speaker 1: estate and you go through the deflation and you have 799 00:45:29,280 --> 00:45:33,239 Speaker 1: loans again against that, you're gonna get wiped out. So 800 00:45:33,680 --> 00:45:36,000 Speaker 1: so you've gotta be really careful on those sides of 801 00:45:36,480 --> 00:45:41,600 Speaker 1: those bets. But probably deflation change a change of FED 802 00:45:42,120 --> 00:45:45,719 Speaker 1: FED rules and other government to bypass to bypass that 803 00:45:46,719 --> 00:45:49,600 Speaker 1: creation of inflation because they're forced on that path now 804 00:45:50,640 --> 00:45:55,200 Speaker 1: inflation leading to hyper inflation, reset of the reset of 805 00:45:55,239 --> 00:45:58,200 Speaker 1: the game deflation. Yeah, yeah, that makes sense, and I 806 00:45:58,280 --> 00:46:00,200 Speaker 1: think that it's very logical. I think that kind of 807 00:46:00,200 --> 00:46:02,839 Speaker 1: see the same way. Uh, And so if I'm paraphrasing, 808 00:46:02,840 --> 00:46:05,560 Speaker 1: and then basically, um, it continues to get worse and 809 00:46:05,640 --> 00:46:08,800 Speaker 1: worse and worse the deflation. The FED continues to do 810 00:46:08,920 --> 00:46:11,279 Speaker 1: more and more and more, which finally overshoot their goal, 811 00:46:11,360 --> 00:46:14,799 Speaker 1: which leads to the hyper inflation, which is eventually the Fed. 812 00:46:15,000 --> 00:46:17,680 Speaker 1: The FED can't create the inflation. They think they can, 813 00:46:17,800 --> 00:46:20,040 Speaker 1: they can just signal the market. They can't. They can't 814 00:46:20,320 --> 00:46:23,279 Speaker 1: because the federal requires that they fed money go to 815 00:46:23,400 --> 00:46:28,640 Speaker 1: banking institutions, and the banking institutions won't lend. Right, So 816 00:46:29,200 --> 00:46:32,399 Speaker 1: even though M one, all of you created all this money, 817 00:46:32,520 --> 00:46:36,320 Speaker 1: it's not actually in velocity M two, people aren't spending 818 00:46:36,360 --> 00:46:39,960 Speaker 1: it because it's not being lent out to to society. 819 00:46:40,400 --> 00:46:43,040 Speaker 1: It's going straight into asset price. So asset prices are 820 00:46:43,080 --> 00:46:46,480 Speaker 1: going up, but it's not creating the inflation. So to 821 00:46:46,560 --> 00:46:48,719 Speaker 1: create the inflation, there has to be a bypass of 822 00:46:48,840 --> 00:46:53,200 Speaker 1: that of that instrument to two people who will then 823 00:46:53,320 --> 00:46:58,000 Speaker 1: spend it, who then then create a hyper inflation. Yeah, great, 824 00:46:58,719 --> 00:47:01,000 Speaker 1: well we're going to wrap it up with that, because 825 00:47:01,040 --> 00:47:03,239 Speaker 1: I know we're out of time, but I appreciate that. UM, 826 00:47:03,760 --> 00:47:06,359 Speaker 1: for everybody that wants to know more about this, of course, 827 00:47:06,440 --> 00:47:08,279 Speaker 1: go read the book The Prices tomorrow. I will link 828 00:47:08,360 --> 00:47:11,360 Speaker 1: to it in the show notes. UM, is there anywhere 829 00:47:11,360 --> 00:47:14,000 Speaker 1: else they should follow the website or you're on Twitter? 830 00:47:14,080 --> 00:47:16,759 Speaker 1: I know on Twitter, just at Jeff Booth. Okay, so 831 00:47:16,960 --> 00:47:18,279 Speaker 1: Jeff Booth. So I'm gonna go ahead and link to 832 00:47:18,320 --> 00:47:20,680 Speaker 1: that in the show notes as well. UM, it's an 833 00:47:20,719 --> 00:47:23,640 Speaker 1: important conversation. I think everybody needs to be more aware 834 00:47:23,680 --> 00:47:25,399 Speaker 1: of what's going on. Like we've talked about, the lack 835 00:47:25,440 --> 00:47:28,080 Speaker 1: of education is a big problem. So go educate yourself, 836 00:47:28,160 --> 00:47:30,279 Speaker 1: get the book, and we'll wrap it up with that. 837 00:47:30,360 --> 00:47:32,439 Speaker 1: Thanks so much, Jeff, Thanks Markus, Gregg