WEBVTT - How Everyone Is WRONG About Inflation | Jeff Booth 0:00:13.800 --> 0:00:17.040 Everyone, Welcome to another episode of the Market Disruptor Show. Today, 0:00:17.079 --> 0:00:19.720 I am sitting down with Jeff Booth. He has written 0:00:19.720 --> 0:00:22.639 a book called The Price of Tomorrow and it's a 0:00:22.800 --> 0:00:24.840 very important book for today. It's a book that everybody's 0:00:24.880 --> 0:00:28.319 interesting because it talks about deflation. Everybody must know about 0:00:28.320 --> 0:00:32.680 inflation deflation. So anyway, Jeff, welcome to the show. Thanks 0:00:32.720 --> 0:00:35.120 a lot for having me. Mark. All right, Jeff so um, 0:00:35.159 --> 0:00:36.920 Like I said, you know, I know about your book. 0:00:36.960 --> 0:00:39.320 I've been following you, listen to your interviews. A lot 0:00:39.360 --> 0:00:41.040 of people maybe don't know. So why did you give 0:00:41.080 --> 0:00:42.919 his quick background? I kind of like who you are 0:00:43.080 --> 0:00:47.120 and what led you to this book. I'm a technology 0:00:47.200 --> 0:00:51.480 entrepreneur for first and foremost, started a number of companies, 0:00:52.040 --> 0:00:55.080 one that grew to over half a billion dollars in market, 0:00:55.120 --> 0:01:00.640 capp Um and Boards and and uh many technolog g companies, 0:01:00.680 --> 0:01:05.000 and founder a number of different technology companies. And I think, 0:01:05.720 --> 0:01:08.039 and I would say, I have a front seat of 0:01:08.040 --> 0:01:11.280 where technology is going because because I'm involved in so 0:01:11.319 --> 0:01:16.400 many technology companies and I'm a reluctant author. I didn't 0:01:16.400 --> 0:01:19.400 want to write the book. Okay, I wrote the book 0:01:19.440 --> 0:01:23.360 because because I looked at where society was going because 0:01:23.360 --> 0:01:26.280 of this, where technology was going out, where where technology 0:01:26.319 --> 0:01:30.800 going The government's trying to stop where technology was going. 0:01:31.600 --> 0:01:34.240 And I looked at the impact of society and looked 0:01:34.240 --> 0:01:35.840 at my kids, and I said, what type of world 0:01:35.920 --> 0:01:38.800 will I grow up in? And nobody was talking about 0:01:38.880 --> 0:01:42.360 kind of this problem and I was. I was super frustrated. 0:01:42.440 --> 0:01:45.559 So that's actually why I wrote the book. Yeah, great, Yeah, 0:01:45.560 --> 0:01:48.160 it's such an important conversation and it's and it's pretty 0:01:48.160 --> 0:01:50.960 deep one that has a lot of different facets and 0:01:51.040 --> 0:01:53.400 areas to it. But um, if we talk about kind 0:01:53.440 --> 0:01:56.520 of the technique, I want to talk about deflation overall, 0:01:56.560 --> 0:01:58.800 but we'll start with kind of the tech disruption of 0:01:58.840 --> 0:02:01.360 that deflation. UM. I know and probably a lot of 0:02:01.360 --> 0:02:04.320 people know. Like when the presidential kind of cycle was 0:02:04.360 --> 0:02:06.920 just getting started, we had a candidate Andrew Yang, and 0:02:07.000 --> 0:02:09.880 he was this tech entrepreneur and he was telling the 0:02:09.880 --> 0:02:12.440 whole world that tech was going to take everybody's jobs. 0:02:12.440 --> 0:02:14.440 AI was going to take everybody's jobs. And so because 0:02:14.480 --> 0:02:17.760 of that, the government needed to start paying everybody to 0:02:17.880 --> 0:02:21.760 not work. And I guess you see the exact opposite 0:02:21.760 --> 0:02:24.359 of that. So what do you think about that in 0:02:25.160 --> 0:02:29.080 part of Andrew's platform, at the part where technology how 0:02:29.120 --> 0:02:31.560 fast technology is moving and it's going to take jobs, 0:02:31.800 --> 0:02:36.520 He's completely right, right, that's how uh, that is what's coming, 0:02:36.760 --> 0:02:39.520 and it's been coming for some time. If you if 0:02:39.520 --> 0:02:43.239 you just think, what is the point of technology, it's 0:02:43.280 --> 0:02:47.600 two free our time. Right. No ceo that no no 0:02:47.919 --> 0:02:50.640 company I work with, gets up every morning and says, 0:02:50.880 --> 0:02:53.280 I have an idea for a great technology company. I'm 0:02:53.280 --> 0:02:57.440 gonna make it more expensive for people. Right. The point 0:02:57.600 --> 0:03:00.600 is you're using technology to recreate industry, reason make them 0:03:00.639 --> 0:03:04.000 more efficient, right, And and the byproduct of that takes 0:03:04.080 --> 0:03:09.000 jobs away, and the byproduct of that is deflationary. So 0:03:09.000 --> 0:03:14.040 so the byproduct that reduces prices. Now that's a that's 0:03:14.040 --> 0:03:17.200 a super interesting point because I mean I've I've studied 0:03:17.240 --> 0:03:19.959 like the technological revolutions, there's been like five the last 0:03:19.960 --> 0:03:21.639 two and fifty years, like the first one, really like 0:03:21.680 --> 0:03:26.239 the industrial revolution, right, and so um, they created equipment 0:03:26.600 --> 0:03:31.080 to help get things done faster in larger quantities, right, 0:03:31.240 --> 0:03:34.440 whether that's equipment for the field to help people get 0:03:34.560 --> 0:03:37.560 field work done faster, whether that was assembly lines to 0:03:37.600 --> 0:03:40.960 get cars done faster, whether it was telephones to get 0:03:41.000 --> 0:03:44.120 communication done faster. But everything as you're as you're saying, 0:03:44.680 --> 0:03:49.640 everything is made to make work less, are less. And 0:03:50.080 --> 0:03:52.640 let's stay on that point for a second, because there's 0:03:52.680 --> 0:03:56.120 an argument. You could make an argument that where we 0:03:56.160 --> 0:04:00.160 are in technology today, like the Industrial Revolution, detector they 0:04:00.680 --> 0:04:03.040 what what will happen as you automate a whole bunch 0:04:03.080 --> 0:04:04.920 of things and then you've created a whole bunch of 0:04:04.920 --> 0:04:07.800 new industries, that world will replace more jobs than they 0:04:07.880 --> 0:04:11.080 described and create a creative destruction. There's you would have 0:04:11.160 --> 0:04:15.960 to if you're going to accept my thesis, you would 0:04:16.000 --> 0:04:19.120 have to debate that topic. Right, is there a possibility 0:04:19.200 --> 0:04:22.840 that this could create more jobs in the future where 0:04:22.839 --> 0:04:25.680 we are in technology? And that's where I think a 0:04:25.680 --> 0:04:27.800 lot of people look back to history and say it's 0:04:27.800 --> 0:04:31.080 worked before. Right, You've gone through these periods, and those 0:04:31.080 --> 0:04:34.560 periods were always really tough. They always ended kind of 0:04:34.560 --> 0:04:38.800 in wars, right because you because a whole bunch of 0:04:38.800 --> 0:04:42.680 people but were being left out. Right, governments inflated against that, 0:04:43.400 --> 0:04:47.880 and you had revolutions and turned into wars. So forget 0:04:48.279 --> 0:04:51.599 the getting through that part. Let's just argue, let's just 0:04:51.680 --> 0:04:54.400 debate that topic. Could there me more jobs in the future. 0:04:55.360 --> 0:04:58.839 And I don't think anybody that's working in technology believes 0:04:58.880 --> 0:05:02.120 that could be true today. Oh really, that's interesting because 0:05:02.200 --> 0:05:05.839 because it would. And and if if that, if you 0:05:05.880 --> 0:05:08.160 find somebody, I'm happy to debate them on your show. 0:05:08.360 --> 0:05:10.599 Because if you know how fast, if you know what's 0:05:10.640 --> 0:05:15.520 happening in artificial intelligence, and artificial intelligence is replacing labor 0:05:15.560 --> 0:05:18.680 at a rate we've never seen before. At first, artificial 0:05:18.680 --> 0:05:22.400 intelligence needs a bunch of PhD researchers who are creating 0:05:22.880 --> 0:05:26.160 the algorithms. But then the algorithms see things we don't see, 0:05:27.040 --> 0:05:30.120 and it moves faster and faster. So the byproduct of 0:05:30.120 --> 0:05:33.440 what's happening here is when I first started my first company, 0:05:33.760 --> 0:05:36.440 it took me about five million dollars in capital to 0:05:36.560 --> 0:05:41.000 create version one of our website and transportation system. That 0:05:41.120 --> 0:05:45.320 same that same website transportation system is available to shot 0:05:45.320 --> 0:05:50.120 on Shopify today. Actually way better for fifty dollars a month. Yeah, right, 0:05:50.760 --> 0:05:53.760 and and so so so you're building on a stack 0:05:53.920 --> 0:05:57.400 that is moving so fast, little pieces of technology that 0:05:57.440 --> 0:06:01.400 are woven together that that costs almost nothing um for 0:06:01.560 --> 0:06:04.159 entrepreneurs to and and and why do you why do 0:06:04.200 --> 0:06:07.400 you think everything on your phone is free, right, right, 0:06:07.640 --> 0:06:11.160 we celebrate deflation and all of the monopolies with credit right, 0:06:11.200 --> 0:06:15.039 and the consumers if you look at Apple, if you 0:06:15.080 --> 0:06:19.279 look at Um and all those apps competing for your attention, 0:06:19.760 --> 0:06:22.400 have entrepreneurs on the other side competing for your attention, 0:06:22.680 --> 0:06:24.560 and they drive the price down to free. You don't 0:06:24.640 --> 0:06:26.560 you don't pay for your flashlight up. You don't pay 0:06:26.600 --> 0:06:29.000 for your guitartoon or you don't pay for a million 0:06:29.080 --> 0:06:32.120 or your camera anymore. You don't pay for anything um 0:06:32.240 --> 0:06:35.640 And that's the point. It just drives abundance just to 0:06:35.880 --> 0:06:41.520 humanity and price prices coming down. Yeah, I think you know. 0:06:41.680 --> 0:06:44.880 I I think people know that kind of inherently, but 0:06:44.920 --> 0:06:48.200 they haven't really thought through this. So. I mean when 0:06:48.200 --> 0:06:50.360 I was a kid, we had the jets in cartoon, right, 0:06:50.400 --> 0:06:52.320 and like they had like robots that were the maids 0:06:52.320 --> 0:06:54.400 and they were doing their housekeeping, and everybody thought, oh 0:06:54.440 --> 0:06:55.960 my gosh, when I grow up, I'm gonna have a 0:06:56.040 --> 0:06:57.599 robot and they're gonna do all my work for me. 0:06:58.400 --> 0:07:02.240 Like didn't we all want that? But but now we're 0:07:02.279 --> 0:07:05.240 threatened by it somehow, right, I guess is what you're saying. Well, 0:07:05.520 --> 0:07:08.120 we're threatened by it because we created a system that 0:07:08.200 --> 0:07:13.040 requires growth and inflation. Right, It's and we we got 0:07:13.200 --> 0:07:16.800 lulled into a belief that that was the way the 0:07:16.840 --> 0:07:21.760 world worked, and like a fundamental law of nature that 0:07:21.880 --> 0:07:26.200 you need inflation, right, And we were taught in economics 0:07:26.200 --> 0:07:28.720 in school. We were taught it. And and so what 0:07:28.880 --> 0:07:32.400 is inflection? Yeah, well let's let's save let's save that 0:07:32.560 --> 0:07:34.560 for a little bit, because I think that is the 0:07:34.640 --> 0:07:38.520 big thing that the discussions about. Right. It's like, don't 0:07:38.600 --> 0:07:42.480 we want deflation, but we have a system that needs inflation, 0:07:42.840 --> 0:07:45.720 and so the problem is what our once are versus 0:07:45.760 --> 0:07:50.160 what we have don't fit. But before we jump into that, um, 0:07:50.200 --> 0:07:53.200 just sticking back on the deflation thing for a minute. Uh, 0:07:53.240 --> 0:07:55.240 and I guess just generally, so we could kind of 0:07:55.240 --> 0:07:58.560 frame this for everybody when we're talking about deflation, what 0:07:58.560 --> 0:08:01.760 what are you kind of talking about? Generally? Um, So 0:08:02.000 --> 0:08:04.960 people may think like deflation, like the economy crashes. People 0:08:05.040 --> 0:08:07.920 might think deflation, prices go down. When we're talking about 0:08:08.400 --> 0:08:11.280 technology and this deflation, what do you what do you? 0:08:11.440 --> 0:08:15.360 How do you? So? So simply, deflation is when your 0:08:15.400 --> 0:08:18.160 money is worth more all the time, Right, So the 0:08:18.440 --> 0:08:20.720 value or your currency rises in relation to goods and 0:08:20.760 --> 0:08:23.520 services because and services go down, your value of your 0:08:24.000 --> 0:08:27.480 and relate. So so you're purchasing power goes up. Right, 0:08:28.200 --> 0:08:31.120 And if you ask any single person that question, would 0:08:31.120 --> 0:08:34.000 they want that? They would say, Wow, that's excellent. Right, 0:08:34.040 --> 0:08:35.680 that's what you're selling. That's what you want because it 0:08:35.720 --> 0:08:38.760 frees your time, all of your time to as your 0:08:38.760 --> 0:08:41.520 purchasing power goes up your time, you get an impact 0:08:41.559 --> 0:08:44.079 on your time. That seems like a pretty good thing, 0:08:44.400 --> 0:08:47.840 right yeah. Yeah, And as we roll that up into economy, 0:08:48.480 --> 0:08:50.400 we say, well, that's a bad thing because it just 0:08:50.760 --> 0:08:55.439 because and the truth it is a bad thing to 0:08:55.679 --> 0:09:00.000 the existing economy we've built because the existing your economy 0:09:00.040 --> 0:09:03.360 we've build requires inflation and it's it's almost a Ponzi 0:09:03.440 --> 0:09:07.480 scheme of credit. Yeah, it can't be paid back. And 0:09:07.520 --> 0:09:11.240 if you allow inflation to happen, the debt has to 0:09:11.280 --> 0:09:14.800 be reset and there and it becomes it becomes a depression. 0:09:15.600 --> 0:09:18.200 I think, Um, so I want so we'll talk about 0:09:18.200 --> 0:09:20.520 the inflation, we'll talk about the competing systems, and then 0:09:20.559 --> 0:09:23.640 I want to get into why maybe there's people, um 0:09:23.679 --> 0:09:26.880 that resist against that because um, it's not just the 0:09:27.040 --> 0:09:30.880 system that's resisting against it, it's also people. But before 0:09:30.920 --> 0:09:33.280 we jump into that, so back in the deflation, I mean, 0:09:33.280 --> 0:09:35.680 I think we frame that perfectly. And I've actually said 0:09:35.679 --> 0:09:38.040 that many times when people ask, well, don't we need inflation? 0:09:38.080 --> 0:09:40.320 And I say, let me ask you a question, would 0:09:40.320 --> 0:09:42.120 you rather her money by more goods and services in 0:09:42.120 --> 0:09:44.880 the future or less? Of course, everybody once more. I 0:09:44.920 --> 0:09:48.439 mean it's like, it's like the most rhetorical question ever. Um, 0:09:48.440 --> 0:09:51.080 so we want that, and that sounds good, but the 0:09:51.120 --> 0:09:54.280 thought of putting people out of work, that sounds bad. 0:09:54.720 --> 0:09:58.920 But don't we want don't we create the technology so 0:09:59.000 --> 0:10:02.040 we can or less? And I think I think if 0:10:02.040 --> 0:10:07.439 you kind of understand, um, how you know the system works, 0:10:07.480 --> 0:10:12.640 how from bartering to money exchange. Um, it was about specialization. 0:10:12.679 --> 0:10:14.720 And if I can specialize in growing food and you 0:10:14.720 --> 0:10:17.680 can specialize in raising animals, then then you save me time, 0:10:17.720 --> 0:10:20.480 I save you time, and we trade like it starts 0:10:20.520 --> 0:10:23.640 at the most basic level and we're only growing past that. Um. 0:10:23.679 --> 0:10:26.880 And that makes sense. Um, But you so I guess 0:10:26.960 --> 0:10:28.719 let's dive into the system now a little bit. So 0:10:28.760 --> 0:10:31.800 the system is set up inflationary, which means we're kind 0:10:31.800 --> 0:10:33.160 of like on this treadmill, we have to kind of 0:10:33.240 --> 0:10:36.560 keep always moving forward. But I guess maybe what you're 0:10:36.640 --> 0:10:40.240 saying is that if technology, if if we allowed technology 0:10:40.280 --> 0:10:45.960 to be deflationary, um, we could theoretically be working less 0:10:46.000 --> 0:10:48.280 and achieving the same thing if we didn't have this 0:10:48.320 --> 0:10:51.440 inflationary system. Is that we have a massive we have 0:10:51.520 --> 0:10:56.160 a massive ability to free our time, right, and and 0:10:56.160 --> 0:10:59.679 and and let's just forget what I want, forget what 0:10:59.720 --> 0:11:03.240 you want. Let's just look at the facts, right, forget 0:11:03.240 --> 0:11:07.120 what the central banks walked right, the fact Sometimes there's 0:11:07.120 --> 0:11:10.320 a structural change in business. You see, you've been an entrepreneur, 0:11:10.400 --> 0:11:14.680 I've been I'm an entrepreneur. In business, creative destruction happens, 0:11:14.880 --> 0:11:19.080 and it happens because it typically the incumbent can't see 0:11:19.120 --> 0:11:22.520 the structural change right, and they can't move their business 0:11:22.840 --> 0:11:26.280 fast enough. They even sometimes in case of Kodak, they 0:11:26.320 --> 0:11:30.120 invented the digital camera and twice the sass and tried 0:11:30.160 --> 0:11:34.200 to get it to get Kodak executives to understand the 0:11:34.200 --> 0:11:36.560 power of the digital camera and how it would replace 0:11:36.600 --> 0:11:41.320 their business. But they sold, They sold film, right, and 0:11:41.400 --> 0:11:45.160 they couldn't see their way through to what what Kodak 0:11:45.200 --> 0:11:48.240 could become. And you go back to that abundance thing 0:11:48.280 --> 0:11:50.679 I was talking about, we use we use way more 0:11:50.679 --> 0:11:53.880 photos today. Yeah, there's a whole bunch of new businesses 0:11:53.880 --> 0:11:57.360 that are created around photos, like Facebook, Google, Just the 0:11:57.800 --> 0:12:00.800 amount of new businesses that are around photos, and we 0:12:00.880 --> 0:12:05.600 use an abundance of them. With Instagram, they're they're free. Yeah, right, 0:12:05.640 --> 0:12:08.880 they're they're they're completely free. So we used to have 0:12:08.920 --> 0:12:11.040 to spend a bunch of money to take photos. I 0:12:11.080 --> 0:12:13.719 remember buying a roll of film taking it pay to 0:12:13.760 --> 0:12:15.640 get a process and you get to be very select 0:12:15.640 --> 0:12:18.439 if you had shots or whatever. Right, and today now 0:12:18.440 --> 0:12:19.600 I can just take as many of the one for 0:12:19.679 --> 0:12:22.680 free and pick the best one and then and delete 0:12:22.679 --> 0:12:25.000 the rest of That saves me a bunch of money 0:12:25.080 --> 0:12:28.040 that I don't have to go make now exactly. And 0:12:28.240 --> 0:12:31.640 so so in that in that example, you'll see the 0:12:31.720 --> 0:12:34.599 same thing. So now roll that up instead of a 0:12:34.640 --> 0:12:38.000 business example, roll that up to an entire system that 0:12:38.040 --> 0:12:41.760 we all live in. Right, and you have a system 0:12:41.840 --> 0:12:45.319 that's always required inflation, and we were taught that it's required, 0:12:45.320 --> 0:12:49.559 and in fact, it was designed to require inflation. And 0:12:50.040 --> 0:12:54.000 in that system, if you if you if you leverage 0:12:54.000 --> 0:12:58.640 with debt and pay the debt back later with cheaper money. 0:12:58.720 --> 0:13:01.800 Because it's you destroy the value of the currency, you're 0:13:01.800 --> 0:13:04.720 a winner, right, And so if you keep that run, 0:13:04.920 --> 0:13:07.760 that means asset prices keep rising and you if you 0:13:07.800 --> 0:13:11.520 can leverage that, you're a winner. So on that side, 0:13:11.559 --> 0:13:16.960 you're now that system competing against the deflationary the rate 0:13:17.200 --> 0:13:22.480 of technologies driving deflation. Continuing to do that deflate to 0:13:22.679 --> 0:13:25.960 that system is essentially pushing on a string. You create 0:13:26.040 --> 0:13:31.400 your massive debt creation, massive monetization. And if all the 0:13:31.440 --> 0:13:35.280 asset winners are also the belts, all the asset owners, 0:13:35.640 --> 0:13:38.800 you be a whole bunch of billionaires and everything they have. 0:13:39.280 --> 0:13:42.400 They have all the houses, most of the stocks, and 0:13:42.440 --> 0:13:45.720 everything else. And if you do that, they you enriching 0:13:45.800 --> 0:13:49.000 them at a crazy rate. Yes, let's go straight up. 0:13:50.360 --> 0:13:53.160 And and all the people who don't have assets, because 0:13:53.200 --> 0:13:57.280 you're destroying the value of currency, okay, and your currency 0:13:57.320 --> 0:13:59.880 value is going down, you're picking their pocket to give 0:13:59.880 --> 0:14:03.640 them the money, and so you get social disruption. Right. 0:14:03.920 --> 0:14:07.640 And what I would go say is it doesn't matter 0:14:08.520 --> 0:14:12.880 ultimately what we want um because what we want is 0:14:13.040 --> 0:14:16.160 based on first principles. It matters what physics or what 0:14:16.400 --> 0:14:18.760 what Where the trend is taking us, and inflation is 0:14:18.800 --> 0:14:20.920 where the trend is taking us. And so we have 0:14:21.000 --> 0:14:23.480 a couple of choices we could make to do that. 0:14:24.000 --> 0:14:28.680 Andrew Yang's who you mentioned. Choice is this in a nutshell. 0:14:31.040 --> 0:14:34.480 We're going to keep on pushing asset prices up. Assist. 0:14:34.600 --> 0:14:37.440 The system requires inflation, and we're going to do everything 0:14:37.480 --> 0:14:40.920 we can to keep us the prices high and then 0:14:40.960 --> 0:14:43.640 the very because we did that the very same people 0:14:43.680 --> 0:14:47.040 that we killed, because we did this right, We kept 0:14:47.080 --> 0:14:49.640 rents high we could because we let didn't let the 0:14:49.640 --> 0:14:52.360 system have a free market. The very syst those people 0:14:52.400 --> 0:14:54.600 are gonna come to government. We're gonna make government bigger 0:14:55.320 --> 0:14:57.720 to give them money to pay for the prices we 0:14:58.080 --> 0:15:03.120 uh us that's we artificially create. It's just illogical, right, 0:15:03.840 --> 0:15:07.840 and capitalism doesn't work that way, right, So um, and 0:15:08.000 --> 0:15:12.840 and so you have all roads U B I and everything. 0:15:12.880 --> 0:15:15.640 I just I totally understand why people want you be 0:15:15.760 --> 0:15:19.480 I because the system is doesn't work right now. So 0:15:19.600 --> 0:15:22.680 you're going to out you're gonna but but it won't. 0:15:22.720 --> 0:15:26.160 That won't. That's not the fix, right, That is not 0:15:26.240 --> 0:15:31.160 the fix. Yeah, So um, you have the system that 0:15:31.200 --> 0:15:34.160 creates inflation. So we talked about the FED basically printing 0:15:34.200 --> 0:15:37.720 money which is now pushing up asset prices um. And 0:15:37.720 --> 0:15:40.520 then so you're punishing the people, or I shouldn't say punishing. 0:15:40.520 --> 0:15:42.440 You're rewarding the people who have the assets. But then 0:15:42.480 --> 0:15:45.040 you're taking some of their profits and then redistribute back 0:15:45.080 --> 0:15:49.160 down to the people um. In other word, in other words, 0:15:49.240 --> 0:15:52.920 the government is the entire economy. The government. It looks 0:15:53.280 --> 0:15:57.520 it's communism. Yeah, it's socialism to communism. And we know 0:15:57.560 --> 0:16:00.160 how managed markets were, We know how manages just out 0:16:00.240 --> 0:16:03.040 his work. Right, Well, you and I you and I do. Yeah, 0:16:03.320 --> 0:16:08.360 you're you're robbing the entrepreneurial process of creatives destruction and 0:16:08.360 --> 0:16:12.120 and and you have subpart subpart gains to your economy. 0:16:12.400 --> 0:16:16.400 So you have to trust and been evlevent benevolent leaders 0:16:17.760 --> 0:16:23.240 and and and once you grab power, whether your generation 0:16:23.280 --> 0:16:25.560 has been evolent or the next one is once you 0:16:26.320 --> 0:16:29.720 that doesn't work. History shows us over and over that 0:16:29.720 --> 0:16:34.440 that path is just just a path to thugs controlling everything. Yeah, 0:16:34.560 --> 0:16:37.440 so you mentioned something called creative destruction and something that 0:16:37.440 --> 0:16:39.440 I've talked about a bunch of times. And so basically 0:16:39.480 --> 0:16:42.640 that means that the new way kills the old way. 0:16:42.760 --> 0:16:45.480 So I've created a new system that gets rid of 0:16:45.520 --> 0:16:48.120 an old system. Email was created and it killed the 0:16:48.200 --> 0:16:50.280 US Postal service or whatever it is, something like that. 0:16:50.720 --> 0:16:54.360 Um And and then you also mentioned capitalism or like 0:16:54.400 --> 0:16:57.360 a free market, and so in a free market we 0:16:57.360 --> 0:16:59.960 would typically see creative destruction. And as you said, code 0:17:00.200 --> 0:17:02.280 is too big, so a small instagram comes up and 0:17:02.440 --> 0:17:06.000 puts them out. But I think maybe also as the 0:17:06.200 --> 0:17:08.560 as the government gets bigger, the market is less and 0:17:08.680 --> 0:17:10.199 less free. I don't I don't see it as a 0:17:10.280 --> 0:17:12.879 light switch. It's not like we're free. We're not free, right, 0:17:12.920 --> 0:17:15.240 It's like degrees of less free. And as we've got 0:17:15.320 --> 0:17:19.440 less free, the corporations use government to entrench their positions 0:17:19.560 --> 0:17:25.800 and slow, if not stop, creative destruction. Do you see that? Yeah? Absolutely, Again, 0:17:26.080 --> 0:17:28.680 that's a feature of the system, not about so so 0:17:29.040 --> 0:17:33.280 so today. Let's let's a lot of times in this 0:17:33.320 --> 0:17:37.480 type of political everything gets politicized, right, and you people 0:17:37.520 --> 0:17:41.040 take sides and they can't see anything. Okay, let's just 0:17:41.119 --> 0:17:45.080 imagine you're a CEO of an airline, right, and and 0:17:45.119 --> 0:17:47.760 you made made a bunch of money this year and 0:17:47.800 --> 0:17:50.520 the government has a policy of negative interest rates, are 0:17:50.600 --> 0:17:54.160 near zero interest rates, and they effectively are saying, if 0:17:54.200 --> 0:17:57.000 you hold cash on your balance sheet, we're going to 0:17:57.080 --> 0:18:00.159 penalize you through inflection because it's gonna be worth next us. 0:18:00.200 --> 0:18:02.240 Next year, it's gonna be worth less than next year. 0:18:02.680 --> 0:18:05.240 So we're gonna hurt you if you hold cash on 0:18:05.280 --> 0:18:07.760 your balance sheet. So what would you do as a CEO? 0:18:08.680 --> 0:18:11.359 Probably buy back your stock, right, right, You're going to 0:18:11.440 --> 0:18:13.919 try to get a return on that money because the 0:18:13.960 --> 0:18:16.359 government is implying that we're not going to give you 0:18:16.440 --> 0:18:20.080 a return by saving for a any day. Right. So, 0:18:20.119 --> 0:18:22.760 now when you have an event where you need all 0:18:22.840 --> 0:18:25.080 of these people are going to be unemployed. Right, your 0:18:25.119 --> 0:18:27.760 airline is gonna go broken, everything else, what do you do? 0:18:27.880 --> 0:18:30.399 You go back to the government and instead of letting 0:18:30.400 --> 0:18:34.320 you fail, they inject a bunch of money to continue 0:18:34.359 --> 0:18:37.080 the whole the whole game. That game is in housing, 0:18:37.200 --> 0:18:42.000 it's in everything. So the government has prevented a free 0:18:42.000 --> 0:18:46.400 market society. Yeah, and or it's kind of like going 0:18:46.440 --> 0:18:48.879 back to being kids, like watching Star Trek and they 0:18:48.880 --> 0:18:52.000 could like they could beam themselves to another place or whatever. Right, 0:18:52.040 --> 0:18:55.240 So imagine like if an airline came across some technology 0:18:55.240 --> 0:18:56.760 where you could just beam yourself, you didn't have to 0:18:56.800 --> 0:18:59.119 get an airplane, and people would be able to do 0:18:59.160 --> 0:19:01.840 this for really, really cheap, and the airline see was like, 0:19:01.880 --> 0:19:03.720 oh my gosh, I could put us out of business. 0:19:03.960 --> 0:19:05.760 That could eatually all our profits. And there's really a 0:19:05.800 --> 0:19:08.160 way to monetize it because it's so cheap. So let's 0:19:08.200 --> 0:19:11.400 just use the government to say that that's unsafe, will 0:19:11.480 --> 0:19:14.400 create policies to say that that type of travel is banned, 0:19:15.160 --> 0:19:17.480 and we'll to force people to go in an airplane. 0:19:17.560 --> 0:19:22.520 Maybe that's kind of how it is, You're I'm laughing, 0:19:22.600 --> 0:19:26.600 because yesterday I saw a product demo from I can't 0:19:26.600 --> 0:19:28.960 say what, I can't say who it is and everything else, 0:19:29.000 --> 0:19:32.000 but from a friend of mine to a technology later 0:19:32.080 --> 0:19:36.080 a CEO of a different technology company, and that product 0:19:36.119 --> 0:19:39.800 demo had something that I would say, feels like a 0:19:39.840 --> 0:19:46.640 tele teleporter. Really what zoom is today? Think about think 0:19:46.680 --> 0:19:50.320 about an actual experience that feels totally different and it's 0:19:50.440 --> 0:19:53.800 native to native to a screen. It's so what's coming 0:19:54.480 --> 0:19:57.600 is what's not widely distributed yet, but it is available 0:19:57.640 --> 0:20:01.720 with technology would flow people's minds. Wow, that's incredible. So 0:20:02.320 --> 0:20:04.760 we didn't we didn't plan that UM and we've even 0:20:04.840 --> 0:20:08.520 seen it. So like obviously, if if anybody's watching this channel, 0:20:08.560 --> 0:20:10.600 they know I'm a big proponent of of bitcoin. I 0:20:10.640 --> 0:20:12.520 pound the table on that all the time to fight 0:20:12.560 --> 0:20:14.960 against what the FED is doing UM and what we've 0:20:15.000 --> 0:20:20.400 even seen UM from I mentioned earlier Christine Legarde from 0:20:20.440 --> 0:20:23.119 the ECB, she came out and said that we I 0:20:23.160 --> 0:20:25.399 forget the exact quote, but basically she said that we 0:20:25.480 --> 0:20:29.480 need to stop this UM technology because it's going to 0:20:29.720 --> 0:20:35.520 disrupt the entire financial system. But yes, isn't that the point? 0:20:35.880 --> 0:20:38.920 So there purposely she's even saying it, they're purposely going 0:20:38.960 --> 0:20:43.480 to try to shut down technology. I guess so so 0:20:44.280 --> 0:20:48.000 UM yes, And that's where, like you all of these 0:20:48.080 --> 0:20:51.720 roads again, if you come back to first principles, we 0:20:51.800 --> 0:20:54.679 are going to get into flesh. The only question is 0:20:55.200 --> 0:20:59.520 UM when so so so? So? Right now, I would 0:20:59.520 --> 0:21:02.320 say we have a deflationary environment and the only thing 0:21:02.400 --> 0:21:07.040 stopping that is massive liquidity injections. Most of that liquidity 0:21:07.119 --> 0:21:11.640 injection is going straight into asset prises, bitcoin, gold, housing, 0:21:11.760 --> 0:21:15.960 everything else. So it's driving those up and people in 0:21:16.000 --> 0:21:19.840 those are thinking they're going to go up forever. And 0:21:19.840 --> 0:21:24.880 and so so if we slow you can see what's 0:21:24.920 --> 0:21:27.159 happening in stock market right now. It's bouncing around, and 0:21:27.200 --> 0:21:30.320 it's you see a whole bunch more volatility in the 0:21:30.400 --> 0:21:32.960 US right now, and in the stock market. That's because 0:21:32.960 --> 0:21:38.120 there's no new stimulus. If if technology is creating deflation 0:21:38.160 --> 0:21:41.320 at this rate, then the debt creation has to be 0:21:41.520 --> 0:21:45.840 the amount of stimulus um and it's exponential, right, More 0:21:45.880 --> 0:21:51.000 and more technology is creating that that deflation, then it 0:21:51.040 --> 0:21:53.560 needs to be exponential monetary using. On the other side, 0:21:54.160 --> 0:21:58.359 any any stop in that exponential monetary using or printing 0:21:58.400 --> 0:22:03.159 of money, the whole thing collapses in it in the 0:22:03.240 --> 0:22:07.399 unwind would be so crazy from where we are. Stock 0:22:07.440 --> 0:22:10.159 prices would lose eighty percent of their value. Housing the 0:22:10.600 --> 0:22:13.439 if you think over the last twenty years, to stop deflation, 0:22:14.960 --> 0:22:19.560 trillion dollars of debt was created and and so so 0:22:19.640 --> 0:22:23.040 you had two fifty trillion dollars of debt running an 0:22:23.080 --> 0:22:27.600 eighty trillion dollar global economy. And that was before COVID, right, 0:22:27.880 --> 0:22:32.200 and and so that and trillion of that debt came 0:22:32.200 --> 0:22:35.919 in the last twenty years against that that path. And 0:22:35.960 --> 0:22:38.720 so when I wrote the book, I predicted what would 0:22:38.720 --> 0:22:42.399 happen next, right, and and all of these things any 0:22:42.440 --> 0:22:45.879 blepin growth because because the inflation requires of you after 0:22:46.119 --> 0:22:47.680 you have to keep going, and to do that, you're 0:22:47.720 --> 0:22:50.920 just piling more and more. So four dollars of four 0:22:50.920 --> 0:22:54.280 dollars of debt creation for one dollar of growth that debt, 0:22:54.520 --> 0:22:56.360 that debt. If you run kind of what the Fed 0:22:56.640 --> 0:22:59.600 is doing today and you assume that debt has to 0:22:59.600 --> 0:23:05.800