WEBVTT - The Mark Moss Show - Wild Inflation 0:00:00.080 --> 0:00:02.400 Hey, everyone, welcome back to another episode of The Mark 0:00:02.480 --> 0:00:06.000 Mass Show, where we talk about the decentralized revolution that 0:00:06.080 --> 0:00:08.400 is changing the world before very eyes. Of course, we're 0:00:08.400 --> 0:00:12.000 talking about bitcoin, we're talking about cryptocurrencies. We're talking about 0:00:12.680 --> 0:00:16.640 how they are bringing the convergence of both politics, technology 0:00:16.800 --> 0:00:19.880 and finance together to change the world as we know it. 0:00:19.920 --> 0:00:23.319 And you really can't understand one without the other. You 0:00:23.400 --> 0:00:26.079 just can't. And so I see a lot of people 0:00:26.160 --> 0:00:28.360 trying to like just focus on politics and then they 0:00:28.400 --> 0:00:31.320 just don't understand really how all that fits into things 0:00:31.360 --> 0:00:33.840 where it's like, oh, great, Okay, you're telling me about 0:00:33.840 --> 0:00:35.360 this topic, but what does that really mean to me? 0:00:35.440 --> 0:00:37.000 Or why do I care? Why should I care kind 0:00:37.000 --> 0:00:39.599 of a thing? Or the same could be about finance, right, 0:00:39.680 --> 0:00:41.960 Like you're talking about yield curve controls, you're talking about 0:00:42.000 --> 0:00:43.519 the euro dollar market. What does that even mean? Well, 0:00:43.520 --> 0:00:44.600 you kind of have to look at the If you 0:00:44.640 --> 0:00:46.960 don't understand the politics behind the euro dollar market, then 0:00:46.960 --> 0:00:49.120 you can't understand the finance part by the eurotellar market, 0:00:49.320 --> 0:00:51.000 And then if you don't understand the technology piece, then 0:00:51.000 --> 0:00:53.000 you don't understand how that's really the driver that changes 0:00:53.040 --> 0:00:54.800 all this together. And so of course that's what we 0:00:54.880 --> 0:00:58.840 are talking about. And of course you know, each and 0:00:58.880 --> 0:01:01.680 every week I'm trying to bring to you another angle 0:01:02.160 --> 0:01:05.680 to understand all of this, because it's not easy. I mean, 0:01:05.720 --> 0:01:08.160 I've been doing this for a long time and um, 0:01:08.280 --> 0:01:11.880 each day we're still discovering and learning um new things 0:01:11.920 --> 0:01:14.440 about it, um and it's it's very interesting and so 0:01:14.480 --> 0:01:17.120 hopefully you're tuning in each and every week. Follow me 0:01:17.160 --> 0:01:20.280 on Twitter at one Mark mossum or on Instagram at 0:01:20.280 --> 0:01:22.280 one Mark Moss and let me know if you have 0:01:22.319 --> 0:01:24.679 any questions. I'd love to answer them for you there online. 0:01:25.440 --> 0:01:29.400 But of course it's no surprise to you. It shouldn't be. 0:01:29.720 --> 0:01:32.160 If you're alive and you've ever spent any money in 0:01:32.200 --> 0:01:33.920 the first last couple of weeks, then you know that 0:01:34.120 --> 0:01:40.200 everything is getting crazy expensive. Just this week, the government, 0:01:40.319 --> 0:01:42.360 the United States government, the BLS, put out the new 0:01:42.440 --> 0:01:46.000 inflation numbers, the c p I, the Consumer Price Index. 0:01:46.120 --> 0:01:48.640 I like to call it the cp lie because they 0:01:48.680 --> 0:01:52.800 lie about the numbers. It's completely fabricated and made up. Um. 0:01:52.840 --> 0:01:54.720 But of course it should be a surprise. They came 0:01:54.720 --> 0:01:59.360 out eight point five percent. Another record. We're we're breaking 0:01:59.360 --> 0:02:02.640 records on our way to another forty year high. Now 0:02:02.680 --> 0:02:04.680 what's interesting is we haven't been to this forty year 0:02:04.760 --> 0:02:10.080 high since the nineteen eighties, which was the famous the 0:02:10.160 --> 0:02:13.280 we're famously known for having the highest levels of inflation 0:02:13.360 --> 0:02:17.080 when then President Ronald Reagan had the uh then sitting 0:02:17.160 --> 0:02:21.560 president Fed Board governor, I should say, Paul Volker. Today 0:02:21.560 --> 0:02:23.920 we have J. Powell. Back then we had Vulcar and 0:02:23.960 --> 0:02:29.280 he famously raised I couldn't even imagine this today. He 0:02:29.320 --> 0:02:31.919 famously raised the Fed funds rate, the interest rate to 0:02:33.520 --> 0:02:38.480 almost twenty percent. It's amazing. It's amazing to think about 0:02:38.520 --> 0:02:41.720 that because we've had almost zero percent for the last 0:02:41.720 --> 0:02:45.000 couple of years. Uh. Just as of like two months ago, 0:02:45.120 --> 0:02:48.720 mortgage rates were like three percent, but in the eighties 0:02:48.760 --> 0:02:52.840 they were twenty percent. Imagine having a mortgage rate insane. 0:02:53.280 --> 0:02:57.079 But then uh then then chair Fed Chair Volker had 0:02:57.120 --> 0:03:00.840 to do that because inflation was so high. And so 0:03:01.000 --> 0:03:04.320 that's the important part to understand, to understand that we're 0:03:04.360 --> 0:03:07.200 back to where we were in the eighties when Vulker 0:03:07.280 --> 0:03:11.639 had to do that raising rates, and here we are 0:03:11.720 --> 0:03:15.639 with the Federal Reserve raising rates a quarter point like 0:03:15.680 --> 0:03:17.400 what the heck is a quarter point going to do. 0:03:18.200 --> 0:03:20.280 The answer is nothing. Now, what does this all have 0:03:20.320 --> 0:03:22.760 to do with bitcoin and cryptocurrencies in this new financial system? 0:03:22.800 --> 0:03:26.240 You say, well, I'm glad you asked that question. Well, 0:03:26.280 --> 0:03:29.800 we're witnessing the death of this system now. Um. People 0:03:29.840 --> 0:03:31.200 ask me all the time because I talked about this 0:03:31.200 --> 0:03:32.560 all the time on my YouTube channel. If you're not 0:03:32.560 --> 0:03:34.760 watching my on YouTube, you should Mark Moss just search 0:03:34.880 --> 0:03:38.000 me there. They say, when Mark, When when is this 0:03:38.040 --> 0:03:39.760 going to happen? Mark? When is it gonna happen? Is 0:03:39.760 --> 0:03:41.320 it gonna be within the next year, within the next 0:03:41.360 --> 0:03:44.600 three years. It's like, dude, it's happening right now, Like, 0:03:45.320 --> 0:03:48.360 don't you see it? Uh? The dollar has not always 0:03:48.400 --> 0:03:50.320 been the reserve currency of the world. Before the dollar, 0:03:50.360 --> 0:03:53.080 it was the British pound, And before the British pound, 0:03:53.120 --> 0:03:55.560 it was I believe Portugal. Before that it was like France, 0:03:55.600 --> 0:03:57.920 and then it was like Holland and right the Dutch guilder. 0:03:57.960 --> 0:03:59.680 It's it's been many different currencies. Sorry, I don't have 0:03:59.720 --> 0:04:01.280 the list in front of me, so sorry if I 0:04:01.280 --> 0:04:03.720 got that wrong. Um, but it but it changes about 0:04:03.720 --> 0:04:05.600 every hundred years, and so the dollar hasn't always been 0:04:05.640 --> 0:04:07.440 There was the British pound before that. And what's important 0:04:07.520 --> 0:04:10.600 understand is that happened in the early you know, twenties 0:04:10.600 --> 0:04:12.520 and thirties, through World War One and World War Two, 0:04:13.280 --> 0:04:17.839 and it was about a forty year transition. So it's 0:04:17.839 --> 0:04:20.480 not like on this day, this is what happened. It's 0:04:20.520 --> 0:04:24.680 just like it's a process. And so everyone asked me 0:04:24.680 --> 0:04:26.599 when is it gonna happen, It's like it's happening right now. 0:04:27.120 --> 0:04:29.120 Like if you're watching like a freshly painted wall dry, 0:04:29.120 --> 0:04:31.120 it's like, when is it gonna dry? Well, it's drying 0:04:31.200 --> 0:04:32.919 right now. We're watching it, and that that's kind of 0:04:32.920 --> 0:04:34.960 what we're doing, except for it's much more exciting than 0:04:34.960 --> 0:04:38.039 watching paint dry. And so back to this inflation we're 0:04:38.120 --> 0:04:41.839 we're we're at this very interesting junction in time where 0:04:42.760 --> 0:04:49.919 inflation is raging um. But but the Fed chair J. 0:04:50.040 --> 0:04:53.720 Powell doesn't really have the ability or probably the stomach 0:04:53.800 --> 0:04:56.240 to do what Paul Wilker did back then. And if 0:04:56.279 --> 0:04:58.520 eight point five sounds bad, it's actually much worse than that. 0:04:58.560 --> 0:05:01.400 We saw a supplier price rose eleven point two from 0:05:01.440 --> 0:05:03.640 a year ago in March, the biggest gain on record. 0:05:04.120 --> 0:05:07.320 This is the producer price index. So there's the CPI, 0:05:07.400 --> 0:05:09.400 the consumer price index, that's how much of your pain 0:05:09.440 --> 0:05:11.919 when you go to the market. The producer price index 0:05:12.000 --> 0:05:15.240 is how much the producers are paining to produce it. 0:05:14.160 --> 0:05:17.719 And it's important to understand that number for a couple 0:05:17.720 --> 0:05:20.840 of reasons. One, it's less manipulated than the CPL number 0:05:20.839 --> 0:05:24.920 the government produces. But also, um, if it costs producers 0:05:24.920 --> 0:05:28.520 to more to produce something, then it's going to also 0:05:28.640 --> 0:05:31.479 cost you more to buy that thing. But it has 0:05:31.520 --> 0:05:34.400 like a lag. So the producer price index gives us 0:05:34.400 --> 0:05:38.160 a little sneak peak as to what's coming next, um right, 0:05:38.200 --> 0:05:40.520 So if if, if, it's it takes time to work 0:05:40.520 --> 0:05:42.760 its way through the system. So like we're seeing commodities 0:05:42.760 --> 0:05:45.880 go through the roof, right, So oil, natural gas, copper, 0:05:46.240 --> 0:05:49.000 zinc they're going through like I mean, fertili like a 0:05:49.880 --> 0:05:53.559 increases and that's when they create the commodity. So they've 0:05:53.720 --> 0:05:56.479 produced the copper, they produced the lithium, and then it 0:05:56.520 --> 0:05:58.719 has to get shipped, which shipping costs have gone up 0:05:58.720 --> 0:06:00.880 because oil has to get ship to the next manufacturer 0:06:00.920 --> 0:06:02.720 who then puts that together and the raw materials, and 0:06:02.720 --> 0:06:04.280 then that has to get shipped to the next person 0:06:04.320 --> 0:06:05.919 who then breaks it down and then they get shipped 0:06:05.920 --> 0:06:07.960 to the manufacturer then assembles it and then it gets 0:06:07.960 --> 0:06:10.119 shipped to the warehouse and then they finally get shipped 0:06:10.120 --> 0:06:12.520 to the retail. So if you look at the start 0:06:12.520 --> 0:06:15.080 of the commodities going up, you know that eventually it's 0:06:15.120 --> 0:06:17.040 like a like a snake and watching like a rat 0:06:17.080 --> 0:06:20.480 go through a snake. Sorry for the visual, but watching 0:06:20.520 --> 0:06:22.120 like a snake go through a rat. And so you 0:06:22.160 --> 0:06:24.320 can see when the prices go up on the commodities, 0:06:24.600 --> 0:06:27.160 you know eventually that's going to get to you at 0:06:27.160 --> 0:06:29.000 the store. And so this kind of gives a sneak 0:06:29.000 --> 0:06:32.240 peek into what's going on. And they are going up, 0:06:32.279 --> 0:06:35.320 like I said, eleven from a year ago, which is 0:06:35.360 --> 0:06:37.800 just insane. Now what they do is they say, well, 0:06:37.800 --> 0:06:41.120 if we strip out what we call core, the core 0:06:41.440 --> 0:06:45.160 pp I or the core CPI, CORE takes out food 0:06:45.800 --> 0:06:48.440 and energy, which is pretty interesting that they would even 0:06:48.440 --> 0:06:51.880 do that, because what are the two most important things 0:06:51.880 --> 0:06:54.000 that we need to stay alive. If you cut out 0:06:54.080 --> 0:06:56.720 everything that you spent money on, the last thing that 0:06:56.760 --> 0:06:59.240 you would cut would be food because obviously you can't 0:06:59.480 --> 0:07:02.680 live without food. Um, And then energy, like you need 0:07:02.839 --> 0:07:05.200 lights at your house, and you need your food and 0:07:05.240 --> 0:07:08.880 refrigerator to stay cold. Without food and energy, you die. 0:07:09.080 --> 0:07:10.880 And I don't know why they want to take those 0:07:10.920 --> 0:07:13.760 things out. Well I do know why. The reason why 0:07:13.880 --> 0:07:15.800 is because those are the things that have gone up 0:07:15.880 --> 0:07:20.200 the most. Um. But you know what they were telling 0:07:20.280 --> 0:07:21.840 us before is inflation is not a problem. And then 0:07:21.880 --> 0:07:25.000 they said inflation is transitory. And then they said, well 0:07:25.040 --> 0:07:27.880 it's not transitory, and they said, oh crap, we better 0:07:27.920 --> 0:07:31.080 do something about it. And now they're telling us that, well, 0:07:31.160 --> 0:07:33.440 I think it's peaked. Okay, now it's peaked. Now we're 0:07:33.440 --> 0:07:36.360 gonna be back on the other side of this. Well, 0:07:36.360 --> 0:07:38.440 I'm here to tell you that it has not peaked, 0:07:38.960 --> 0:07:40.720 is not peaked. I'm gonna break down some numbers as 0:07:40.800 --> 0:07:42.040 to why. I want to show you what some of 0:07:42.080 --> 0:07:45.120 the numbers are and how I am pretty sure that 0:07:45.160 --> 0:07:47.720 it's not. And also I have this startling number that 0:07:47.760 --> 0:07:49.920 I saw today in a chart from the from the St. 0:07:49.960 --> 0:07:53.320 Louis Federal Reserve Board that is shocking and it is 0:07:53.320 --> 0:07:55.200 not good. I'm gonna tell you about that. But one 0:07:55.200 --> 0:07:57.520 of the best ways to UM that I like to 0:07:57.640 --> 0:08:00.280 hedge against inflation is to buy assets that are going 0:08:00.360 --> 0:08:04.120 up faster than inflation. So for example, maybe buying real 0:08:04.280 --> 0:08:07.560 estate at very low interest rate that inflation could basically 0:08:07.600 --> 0:08:09.239 pay off for you. That's one way to do it. 0:08:09.400 --> 0:08:11.880 Or one of my favorite ones is of course bitcoin, 0:08:12.600 --> 0:08:16.840 buying bitcoin UM it's been going up faster than the 0:08:16.880 --> 0:08:18.400 rate of inflation. As a matter of fact, it's average 0:08:18.400 --> 0:08:23.000 about a year compounded annual growth rate. And so if 0:08:23.040 --> 0:08:26.080 I buy an asset like bitcoin, UM, stocks are another 0:08:26.080 --> 0:08:28.200 way that I can go, you know, beat beat that 0:08:28.280 --> 0:08:30.120 rate of inflation. But bitcoin has been the best, my 0:08:30.200 --> 0:08:34.000 preferred way to do that. UM. Of course, with bitcoin, 0:08:34.320 --> 0:08:35.960 you want to make sure that you're holding it correctly. 0:08:35.960 --> 0:08:37.520 I've talked about this many times. I made a video 0:08:37.520 --> 0:08:39.320 about it. You can search it on YouTube. How I 0:08:39.400 --> 0:08:42.480 lost over two million dollars worth of bitcoin. I know, right, 0:08:42.520 --> 0:08:44.240 It's like a gut punch. Even for me to say 0:08:44.240 --> 0:08:46.640 it again, it brings back memories. It wasn't two million 0:08:46.640 --> 0:08:48.839 dollars at the time, but in today's dollars, if I 0:08:48.840 --> 0:08:50.440 would have held onto that bitcoin would be worth over 0:08:50.480 --> 0:08:54.000 two million dollars today and I lost it. You're listening 0:08:54.040 --> 0:08:55.480 to the Mark Mushow. I want to give you a 0:08:55.480 --> 0:08:58.080 couple of numbers about the consumer credit that is going 0:08:58.120 --> 0:08:59.680 to blow your mind. I want to talk about why 0:08:59.800 --> 0:09:01.480 in relations canna keep going up and what you should 0:09:01.480 --> 0:09:03.839 do about it. So don't go away. I'll be right back. 0:09:04.400 --> 0:09:06.480 All right, welcome back. You're listening to the Markmas Show. 0:09:06.480 --> 0:09:09.200 We're talking about bitcoin and cryptocurrencies. We're talking about the 0:09:09.200 --> 0:09:13.240 decentralized revolution. We're talking about, or rather I should say, 0:09:13.320 --> 0:09:18.000 I'm narrating you through the changing monetary system, the world 0:09:18.160 --> 0:09:21.400 order as we know it. Like I said, people ask 0:09:21.440 --> 0:09:23.079 me all the time, when when is it gonna happen? 0:09:23.080 --> 0:09:25.280 And I say, it's happening right now. You just gotta 0:09:25.280 --> 0:09:28.120 pay attention. And so we're witnessing the death of it. 0:09:28.559 --> 0:09:31.160 The problem is and I and I take no joy 0:09:31.200 --> 0:09:34.160 in this. I take no joy in this. It's not 0:09:34.200 --> 0:09:36.920 going to be good for most people. It's not going 0:09:36.960 --> 0:09:39.480 to be good for most people. UM. The system that 0:09:39.520 --> 0:09:43.199 we have is set up to take care of people 0:09:43.200 --> 0:09:47.560 who don't want to take care of themselves. And so 0:09:47.760 --> 0:09:49.800 you know, my job is to try to wake as 0:09:49.800 --> 0:09:52.480 many people up as I can so they can you know, 0:09:52.559 --> 0:09:56.400 get on the right side of this. UM. So I 0:09:56.400 --> 0:09:58.280 don't take any joy in it, but it is what 0:09:58.320 --> 0:10:00.280 it is, and it's happening right now. And I was 0:10:00.320 --> 0:10:03.600 talking about inflation and how inflation is going crazy. What 0:10:03.640 --> 0:10:06.400 we're talking about. The producer price indexes at another all 0:10:06.440 --> 0:10:08.360 time I and if it costs more to produce stuff, 0:10:08.360 --> 0:10:09.880 it's going to cost you more to buy the stuff. 0:10:11.000 --> 0:10:12.400 And I said that I was gonna show you how. 0:10:12.400 --> 0:10:15.320 I was saying, inflation has not peaked. So they were 0:10:15.360 --> 0:10:17.240 telling you it's transitory and it's gonna go away, and 0:10:17.240 --> 0:10:19.800 they're saying it's peaked this and them, But it hasn't peaked. 0:10:20.200 --> 0:10:23.320 And and we know this because of one, like I said, 0:10:23.360 --> 0:10:26.320 the producer price index, UM, that's going up. And so 0:10:26.320 --> 0:10:27.880 if that's still going up, we know the consumers are 0:10:27.880 --> 0:10:32.120 going to pay more. But we also see that all 0:10:32.160 --> 0:10:35.680 that matters is like UM, when you break down the spending, 0:10:35.760 --> 0:10:38.120 there's like different categories you have like food and energy, 0:10:38.200 --> 0:10:41.960 your food, energy, energy, trade, things like that. But the 0:10:41.960 --> 0:10:43.559 thing is, as I was saying, is that food and 0:10:43.600 --> 0:10:46.560 energy the most important things. Those are like your basic necessities, 0:10:47.240 --> 0:10:50.200 and so UM as those those are climbing like crazy, 0:10:50.240 --> 0:10:52.600 they're going up insane, which is why they try to 0:10:52.679 --> 0:10:55.120 pull those out to try to make it look better, right, 0:10:55.440 --> 0:10:58.600 But those are the final final good demands. And what 0:10:58.720 --> 0:11:03.319 happens is when the is go up in value, um, 0:11:03.320 --> 0:11:05.960 maybe people spend less on the other things, so it 0:11:06.000 --> 0:11:09.360 looks a little bit better temporarily um. And the energy 0:11:09.360 --> 0:11:12.000 prices they do fluctuate, so like, for example, the Biden 0:11:12.000 --> 0:11:15.560 administration has been releasing oil from the strategic Patroleum reserves, 0:11:15.720 --> 0:11:17.760 so it's brought the gas prices down a couple of pennies, 0:11:17.880 --> 0:11:20.440 not not a lot. It looks like a big win 0:11:20.559 --> 0:11:23.000 for them. It's much more dangerous for us no long 0:11:23.080 --> 0:11:25.720 term because now we don't have any reserves. That doesn't 0:11:25.720 --> 0:11:27.640 sound like a good idea. It's not really an emergency. 0:11:28.360 --> 0:11:31.280 We're supposed to hold those for an actual like emergency, 0:11:31.880 --> 0:11:35.360 which we're not in. But you know, the energy prices 0:11:35.400 --> 0:11:39.360 are fluctuated about food prices. Food prices don't fluctuate, right. Um. 0:11:39.520 --> 0:11:41.880 Once the price of a grocery item goes up, that's 0:11:41.960 --> 0:11:45.000 that's just it. It stays there forever, right. And if 0:11:45.040 --> 0:11:47.200 you think about this logically, when food prices go up 0:11:47.240 --> 0:11:50.439 really fast, then the price of other stuff maybe falls 0:11:50.600 --> 0:11:52.440 or at least rises a little bit more slowly because 0:11:52.480 --> 0:11:55.840 people are buying have to spend more money and defeating themselves. 0:11:55.840 --> 0:11:58.760 They're not buying other stuff as much like cars and 0:11:58.920 --> 0:12:03.199 you know, entertainment they like. That makes sense, right, But 0:12:03.320 --> 0:12:05.200 that doesn't mean that inflation is peaking. It just means 0:12:05.240 --> 0:12:08.960 that people are getting poorer because price increases are getting worse. 0:12:09.440 --> 0:12:11.440 And we can see this evidence in the chart. And 0:12:11.480 --> 0:12:13.360 this is in this chart that we got from the 0:12:13.440 --> 0:12:17.800 from the thread the St. Louis Federal Reserve and it's 0:12:17.840 --> 0:12:21.240 on consumer credit. And so what we've seen is that 0:12:21.400 --> 0:12:25.400 consumer credit is climbing at an all time record pace 0:12:25.520 --> 0:12:29.320 right now. I mean it's insane. Um. And now consumer 0:12:29.360 --> 0:12:34.000 credit is like credit cards, like when do you use 0:12:34.040 --> 0:12:36.920 credit cards? Like when you go to dinner or things 0:12:36.960 --> 0:12:40.600 like that. Now there's such thing. I'm a big fan 0:12:40.679 --> 0:12:43.719 a disciple of Robert Kiyosaki, has been my teacher for 0:12:44.200 --> 0:12:46.000 twenty five years, reading his books and now he's one 0:12:46.040 --> 0:12:48.520 of my actual friends. UM. And he talks about good 0:12:48.559 --> 0:12:50.880 credit and bad credit. Now, good credit is when I 0:12:50.920 --> 0:12:54.440 buy new equipment from my business, um, and that now 0:12:54.559 --> 0:12:56.920 can make income for me for a long time. If 0:12:56.920 --> 0:12:59.200 I'm invested into R and D, and that can engrow 0:12:59.280 --> 0:13:02.760 my business. So when I'm using credit for things like 0:13:02.800 --> 0:13:05.600 that that can help me grow, that can help me earn, 0:13:06.160 --> 0:13:07.920 that's that's a good form of credit. If I if 0:13:07.920 --> 0:13:11.040 I borrow money to buy an apartment building, and now 0:13:11.080 --> 0:13:14.000 that apartment building makes me income, that's good credit. But 0:13:14.360 --> 0:13:17.600 but what consumer loans consumer credit is totally different, right. 0:13:17.600 --> 0:13:20.160 It's a pretty modern invention. It started about the fifties 0:13:20.160 --> 0:13:22.000 and sixties when we got those personal credit cards. I 0:13:22.000 --> 0:13:24.520 was talking about that earlier and about the forties. Makes 0:13:24.520 --> 0:13:28.040 no business sense at all. Basically, you're allowing someone to 0:13:28.200 --> 0:13:32.680 use debt to buy food, like people can use debt 0:13:32.559 --> 0:13:35.880 to buy food. Like that's a moral problem, right, If 0:13:35.920 --> 0:13:39.400 someone has to borrow money, go into debt to buy food, 0:13:40.400 --> 0:13:46.120 they're probably not able to pay you back, right, Um, Like, 0:13:46.320 --> 0:13:48.880 maybe if people can't afford food, we should give them charity, 0:13:49.040 --> 0:13:51.720 not credit, something like that, maybe an interest free loan. 0:13:52.160 --> 0:13:56.480 But you shouldn't be using money for consumable things because 0:13:56.520 --> 0:13:58.120 it's probably be able to pay back. And so this 0:13:58.200 --> 0:14:00.800 chart just shows us. You can't it, but you can 0:14:00.880 --> 0:14:04.200 just google it later. It shows you how bad this is. 0:14:04.240 --> 0:14:07.200 And at this record credit expansion that we're in right now, 0:14:07.320 --> 0:14:08.640 Like I said, with a lot of it going into 0:14:08.640 --> 0:14:13.000 the food and basic necessities. It shows, it shows how 0:14:13.160 --> 0:14:18.280 society's creator. Right, it's an it's a societal thing, um. 0:14:18.360 --> 0:14:20.320 And it has to do with this inflation going up. 0:14:20.320 --> 0:14:22.800 It's bad um. And like I said, well, the Fed 0:14:22.840 --> 0:14:25.600 wants to tell us that they've beaten they've beaten inflation, 0:14:25.840 --> 0:14:28.640 that they've got a handle on it. Like I said, Um, 0:14:28.680 --> 0:14:30.760 that's not what we see. The producer Price Index is eleven, 0:14:31.520 --> 0:14:35.400 the biggest jump in prices UM since we've been tracking 0:14:35.400 --> 0:14:40.240 this data since two thousand ten UM. And basically what 0:14:40.280 --> 0:14:41.880 this tells us is that the real value of the 0:14:41.920 --> 0:14:50.040 government's um thirty trillion dollar pile of debt UM will 0:14:50.040 --> 0:14:53.880 be reduced to about three trillion this year because of 0:14:53.920 --> 0:14:57.960 inflation UM. And this is basically what the big game is, right, 0:14:58.000 --> 0:15:01.960 Like Washington wants to make that go away by having 0:15:02.160 --> 0:15:06.080 this inflation um. But it's not going away something you 0:15:06.040 --> 0:15:07.920 need to be prepared for, which is again why you 0:15:07.960 --> 0:15:11.440 need to be thinking about hedging your bets with something 0:15:11.480 --> 0:15:13.280 that can head you against inflation. Now, the first thing 0:15:13.400 --> 0:15:16.640 is if you're not already saving money, that's your first problem. 0:15:16.840 --> 0:15:20.520 So first off, think about that. Can you increase the 0:15:20.520 --> 0:15:25.440 amount of income you're making your wealth creation. UM. If 0:15:25.520 --> 0:15:29.800 you're having trouble increasing your money your wealth creation, and 0:15:29.880 --> 0:15:32.400 you might need to learn some new skills. Those are 0:15:32.440 --> 0:15:36.040 typically around what I call high value skills. Those are 0:15:36.080 --> 0:15:39.880 typically around sales and marketing, the closest to the money supply. 0:15:40.360 --> 0:15:42.680 I could go into any business on my local downtown 0:15:42.760 --> 0:15:44.640 and say, hey, if I drove you a million dollars 0:15:44.680 --> 0:15:46.640 of business this year, would you give me a hundred thousand? 0:15:46.880 --> 0:15:48.800 And they would all say yes. And so I could 0:15:48.800 --> 0:15:53.240 do that through both sales and marketing. UM. And then 0:15:53.280 --> 0:15:55.680 you need to look at cutting expenses. And the goal 0:15:55.760 --> 0:15:59.680 is to consume less than you produce, right, spend less 0:15:59.680 --> 0:16:01.600 than you earn, and then you can start saving. And 0:16:01.640 --> 0:16:03.680 then you need to save that in something that can 0:16:03.760 --> 0:16:08.040 beat this rate of inflation, because it's not getting better. 0:16:08.200 --> 0:16:10.200 Like I was, like I was telling before, like Paul 0:16:10.280 --> 0:16:17.280 Volker Uh dealt with something similar way back in the day, UM, 0:16:17.320 --> 0:16:19.600 and he was able to raise rates. But we can't 0:16:19.640 --> 0:16:23.280 do that. I mean nine at the time, federal debt 0:16:23.320 --> 0:16:27.840 was only eight and twenty seven billion, less than one trillion. 0:16:28.240 --> 0:16:32.720 Today we're at thirty trillion. So UM, you can't just 0:16:32.840 --> 0:16:34.960 raise the debt. I'm sorry. You can't just raise the 0:16:35.040 --> 0:16:39.200 rates when you've got thirty times more than thirty times 0:16:39.560 --> 0:16:45.520 the amount of debt. This doesn't work. You know, the 0:16:45.840 --> 0:16:49.400 FEDS have printed up eight trillion dollars in extra cash 0:16:49.680 --> 0:16:54.040 in the last twenty years, eight trillion. The biggest spurt, 0:16:54.120 --> 0:16:56.480 four trillion of it came in the last eighteen months. 0:16:57.200 --> 0:17:01.880 That means the more they print the more are the 0:17:02.000 --> 0:17:05.439 less your existing dollars are worth. So the goal is 0:17:05.480 --> 0:17:07.600 to make more of those dollars while you can spend 0:17:07.680 --> 0:17:09.119 less of them so you can save someone put it 0:17:09.119 --> 0:17:10.960 into something like bitcoin that you can hold over a 0:17:10.960 --> 0:17:14.959 long period of time and hope to make it on 0:17:15.000 --> 0:17:18.240 the other side. Alright, So hopefully that makes sense. Now, 0:17:18.240 --> 0:17:20.399 we've got a lot more to cover in what's happening 0:17:20.480 --> 0:17:22.440 right here, a lot more about what the FEDS doing, 0:17:22.440 --> 0:17:24.639 a lot more about what's happening over in Europe, and 0:17:24.680 --> 0:17:26.720 they're trying to come back this and then of course 0:17:26.760 --> 0:17:28.399 trying to bring it back to what you should be 0:17:28.440 --> 0:17:29.760 doing about this. I've got a lot more to cover. 0:17:30.160 --> 0:17:32.160 Do not go away, you're listening to the Markmas Show. 0:17:32.160 --> 0:17:34.399 I'll be right back, all right. Welcome back. You are 0:17:34.440 --> 0:17:38.159 listening to the Mark ma Show. We're talking about, well, 0:17:38.240 --> 0:17:40.399 the same thing we talked about every week. Bitcoin, we're 0:17:40.400 --> 0:17:43.560 talking about cryptocurrency. We're talking about the decentralized revolution the 0:17:43.560 --> 0:17:47.240 world is going into right now. Never a dull moment 0:17:47.240 --> 0:17:51.000 around here lately, because it is changing rapidly before eyes. 0:17:51.040 --> 0:17:52.920 And that is, of course, if you have them open 0:17:52.920 --> 0:17:55.480 and you're paying attention, which of course I know you 0:17:55.520 --> 0:17:58.040 are because you are tuned in and you're listening to 0:17:58.040 --> 0:18:00.359 me right now. Now, a couple of things that we've 0:18:00.400 --> 0:18:02.960 been talking about before the break is, uh, the rate 0:18:03.080 --> 0:18:05.840 of this financial system dying right before us. You know, 0:18:05.880 --> 0:18:11.200 it's pretty interesting. Um you look at uh, at a 0:18:11.440 --> 0:18:15.760 system dying and why that happens, right, and so like 0:18:16.160 --> 0:18:18.080 the one that we're in right now, it's like falling 0:18:18.119 --> 0:18:21.320 apart and there's not enough superglue and duct taped off 0:18:21.320 --> 0:18:24.200 seemed to hold this thing together. I was talking about 0:18:24.240 --> 0:18:26.959 before the break. I was talking about how we're setting 0:18:27.320 --> 0:18:31.160 new inflation numbers that haven't been seen since the nineteen eighties, 0:18:31.440 --> 0:18:35.000 when of course we had inflation is high again and 0:18:35.040 --> 0:18:38.640 at that time, then President Ronald Reagan had then um 0:18:38.800 --> 0:18:42.120 fed share of President Paul Volker, and he did some 0:18:42.440 --> 0:18:47.400 crazy things like raising interest rates, and here we are 0:18:47.720 --> 0:18:49.760 no near zero percentage strates and the FED is trying 0:18:49.800 --> 0:18:52.800 to raise them like a quarter of a percent like 0:18:52.840 --> 0:18:56.440 that ain't gonna do anything, Like they're not even trying, right, 0:18:56.480 --> 0:18:58.159 But at the same time, they're like gas lighting us. 0:18:58.200 --> 0:18:59.520 They're trying to tell us what we're seeing is not 0:18:59.560 --> 0:19:01.520 what we're seeing, and then try and tell us it, Oh, no, 0:19:01.600 --> 0:19:03.960 don't worry, like prices are coming down, like like, uh, 0:19:04.240 --> 0:19:06.720 don't don't worry. Don't worry about that. Now. I was 0:19:06.760 --> 0:19:08.880 given some numbers before, but you know, I was looking 0:19:08.880 --> 0:19:12.320 at this chart I posted on Twitter, I think yesterday. 0:19:12.720 --> 0:19:14.359 Um and if you're not following me on Twitter, you should. 0:19:14.400 --> 0:19:17.600 It's at one Mark Moss at one Mark Moss and um. 0:19:17.600 --> 0:19:20.000 I was saying that if you don't believe food food prices, 0:19:20.440 --> 0:19:23.719 or I said, don't believe the whole h food prices 0:19:23.720 --> 0:19:26.359 of peak narrative, because what happens is they look at 0:19:26.400 --> 0:19:28.919 inflation and they look at it as they measure it 0:19:28.960 --> 0:19:31.560 in year over year prices. So they'd say, um, you know, 0:19:31.600 --> 0:19:34.480 here we are in April. So let's say April last 0:19:34.560 --> 0:19:36.880 year was this price. Now April this year is this price. 0:19:36.920 --> 0:19:38.840 So year over year it was as much of a game. 0:19:39.480 --> 0:19:41.600 And when we look at food prices, what we can 0:19:41.600 --> 0:19:46.719 see is that in in uh, April, May and June 0:19:46.960 --> 0:19:52.479 were actually surprisingly low. Now uh, if you uh, if 0:19:52.480 --> 0:19:53.800