WEBVTT - Debt Ceiling Debate and the Impending Showdown 0:00:00.320 --> 0:00:02.800 Hello, Welcome back to another episode of The Mark Moss Show, 0:00:02.800 --> 0:00:05.760 where we talk about the decentralized revolution, the way the 0:00:05.760 --> 0:00:08.680 world's changing right before our very eyes. And of course 0:00:08.960 --> 0:00:15.320 the three revolutionary cycles are politics, finance, and yes, technology, 0:00:15.480 --> 0:00:17.160 so we look at the world through those lens so 0:00:17.239 --> 0:00:20.440 we can see what's happening and understand what's happening, and 0:00:20.480 --> 0:00:23.760 of course make decisions to protect ourselves and come out. 0:00:23.560 --> 0:00:26.239 Ahead as all of this happens. 0:00:26.640 --> 0:00:28.560 Now in the world of finance, you know, we are 0:00:28.600 --> 0:00:33.160 witnessing three revolutions. There's a technological revolution on a fifty 0:00:33.200 --> 0:00:36.560 year cycle, of political revolution cycle on a tunifty year cycle, 0:00:36.600 --> 0:00:40.120 and a financial revolution cycle on an eighty year cycle. 0:00:40.360 --> 0:00:43.680 And it's pretty easy to see the financial revolution is here. 0:00:43.720 --> 0:00:46.400 The entire finance system that we have in the world 0:00:46.400 --> 0:00:50.360 today is completely breaking apart. We have way too much 0:00:50.440 --> 0:00:54.440 debt and we don't have enough production. There's not enough 0:00:54.440 --> 0:00:57.680 global GDP growth to manage the amount of debt that 0:00:57.720 --> 0:01:00.000 we have, so I mean the debt is growing fast 0:01:00.800 --> 0:01:04.920 than the production. Remember, wealth is not money, Wealth is 0:01:05.120 --> 0:01:10.440 goods and services. If the money grows faster than the 0:01:10.480 --> 0:01:12.080 goods and services does. 0:01:12.400 --> 0:01:15.400 Then you have massive inflation. 0:01:15.720 --> 0:01:19.679 You have more currency units, more money chasing a limited 0:01:19.720 --> 0:01:23.120 supply of goods. It pushes the prices up. So that's 0:01:23.120 --> 0:01:25.400 why your meat and your milk, and your cheese and 0:01:25.440 --> 0:01:27.680 your eggs and your gas in your house and everything 0:01:27.720 --> 0:01:31.160 else is getting so expensive. And part of it isn't 0:01:31.200 --> 0:01:34.360 just that the money supply is growing faster than the 0:01:34.400 --> 0:01:38.119 goods and services, but it's debt. And so debt does 0:01:38.160 --> 0:01:40.560 two things. One, yes, it crowds out the market and 0:01:40.640 --> 0:01:43.200 makes the price of everything go up, but it also 0:01:43.440 --> 0:01:47.440 is a drag on production, on productivity. It's like it's 0:01:47.520 --> 0:01:49.520 like putting on like one hundred pounds backpack and then 0:01:49.560 --> 0:01:52.360 trying to go run a marathon. It just drags it 0:01:52.440 --> 0:01:55.720 down because like, for example, I took on this debt. 0:01:56.040 --> 0:01:57.680 Let's say that I took. 0:01:57.520 --> 0:01:59.120 On this debt to buy this new piece of equipment 0:01:59.120 --> 0:02:02.160 from my office my company, and I was hoping that 0:02:02.160 --> 0:02:05.200 that would then bring me more revenue. So I'm going 0:02:05.240 --> 0:02:07.160 to take a thousand dollars payment on this new truck, 0:02:07.320 --> 0:02:09.280 but hopefully it makes me five thousand a month in 0:02:09.360 --> 0:02:11.720 new business. But let's say that that business doesn't come 0:02:11.760 --> 0:02:13.600 and now I'm just stuck making this thousand dollars payment 0:02:13.639 --> 0:02:15.760 on the truck, and now I can't afford to go 0:02:15.840 --> 0:02:17.560 do another thing because I got to sit there and 0:02:17.560 --> 0:02:20.320 make that payment on that truck. So drags things down, 0:02:20.360 --> 0:02:24.520 and of course we're front and center to another debt 0:02:24.600 --> 0:02:27.639 ceiling debate. Talked about this for the last couple weeks 0:02:27.680 --> 0:02:29.440 because it's coming to a head. As a matter of fact, 0:02:29.480 --> 0:02:33.000 we're witnessing what's known as the X date. The X 0:02:33.120 --> 0:02:36.840 date is the date that the government, like literally the 0:02:36.919 --> 0:02:40.160 United States government, the US Treasury. 0:02:40.080 --> 0:02:42.200 Runs out of money. That's the date. 0:02:42.600 --> 0:02:45.359 That's the date everything falls apart. And here we are 0:02:45.480 --> 0:02:49.679 running straight to that and it looks like we might 0:02:49.840 --> 0:02:54.080 actually hit it now. They say the US government won't default. 0:02:54.160 --> 0:02:56.720 You know, Biden's on there saying we won't default. We're 0:02:56.720 --> 0:02:58.920 not dead beats, we pay our debt, et cetera. I 0:02:58.960 --> 0:03:01.320 want you to just understand one thing clear. First of all, 0:03:01.760 --> 0:03:06.560 there's two types of defaults here, Okay, a hard default. 0:03:07.040 --> 0:03:09.520 A hard default is when they say we ain't paying 0:03:09.639 --> 0:03:11.320 we're not paying any of our bills, like we're not 0:03:11.360 --> 0:03:13.680 paying back our treasury, so we're not paying back our 0:03:13.720 --> 0:03:17.880 bond holders. That's not gonna happen, right, no government with 0:03:18.000 --> 0:03:21.040 a money printer will ever default on that. They're gonna 0:03:21.040 --> 0:03:24.440 pay that, but then there's a technical default, and a 0:03:24.480 --> 0:03:27.360 technical default will happen if they don't make a deal 0:03:28.080 --> 0:03:32.680 in time and it gets delayed a couple of days. Now, 0:03:32.840 --> 0:03:34.640 if it gets delayed a couple days, they'll just you know, 0:03:34.680 --> 0:03:36.480 take money from one place to another. They'll say, hey, 0:03:36.480 --> 0:03:38.600 i'll pay you next week, I'll pay you with interest, 0:03:38.640 --> 0:03:42.760 and they'll pay the bills like this gets resolved. Of course, 0:03:42.800 --> 0:03:44.960 they have a money printer, they're gonna pay it. But 0:03:45.160 --> 0:03:48.120 a technical default could happen if a deal can't be 0:03:48.160 --> 0:03:50.520 reached in time. And we're getting to that point as 0:03:50.560 --> 0:03:53.760 a matter of fact. This week, the Bide administration and 0:03:53.840 --> 0:03:57.800 the Republican side, McCarthy leading that side, have been meeting 0:03:58.200 --> 0:04:00.840 and they say they are not, I mean close to 0:04:00.920 --> 0:04:05.000 a deal. Now. I've gone through the details of that deal. 0:04:05.000 --> 0:04:06.560 I don't want to kind of recall all that roight 0:04:06.560 --> 0:04:09.840 off the top of them my head. But the Republicans 0:04:09.880 --> 0:04:12.640 have offered to raise the debt ceiling another one point 0:04:12.720 --> 0:04:13.360 five trillion. 0:04:14.640 --> 0:04:15.880 Now, to put that into. 0:04:15.720 --> 0:04:18.400 Perspective, in two thousand and eight, when there was a 0:04:18.440 --> 0:04:22.279 great financial crash, when the entire global financial system was. 0:04:22.279 --> 0:04:27.640 Crumbling, the entire it was a seven hundred billion dollar bailout. 0:04:27.920 --> 0:04:30.719 So right now the Republicans are offering them double the 0:04:30.839 --> 0:04:33.360 money that they needed in two thousand eight to save 0:04:33.400 --> 0:04:36.360 the whole world. Double that it's not enough. Democrats say no, 0:04:36.440 --> 0:04:38.600 no deal. Biden says no deal. So they've offered them 0:04:38.600 --> 0:04:40.400 that because they said, hey, we'll give you the one 0:04:40.400 --> 0:04:43.320 point five trillion. But over the next several years, you're 0:04:43.360 --> 0:04:45.600 gonna have to start cutting some of the budgets, like 0:04:45.640 --> 0:04:50.440 you just because the budget is projected to continue to 0:04:50.560 --> 0:04:53.720 grow bigger and bigger, bigger the deficit the shortcoming of 0:04:53.760 --> 0:04:57.039 the income and expenses. The deficit is projected to get 0:04:57.080 --> 0:05:00.160 bigger and bigger and bigger and bigger, which means, per 0:05:00.360 --> 0:05:04.160 the government's own plans the CBO Congressional Budget Office. 0:05:04.200 --> 0:05:06.719 Per the CBO's report, they're. 0:05:06.560 --> 0:05:09.440 Planning to continue to spend more than they bring in 0:05:09.520 --> 0:05:12.000 over the next several years, and not just spend more 0:05:12.040 --> 0:05:16.000 than they bring in, but continue to increase the gap 0:05:16.120 --> 0:05:18.720 and continue to spend even more and more and more 0:05:18.839 --> 0:05:22.080 as they're not bringing enough. So they're projecting for the 0:05:22.120 --> 0:05:24.680 deficit to grow from one trillion to two trillion to 0:05:24.760 --> 0:05:27.720 three trillion over the next decade. So the Republicans are like, 0:05:27.760 --> 0:05:29.640 hang on, hang on, hang on, whoa, whoa, whoa, whoa. Okay, 0:05:29.640 --> 0:05:31.320 we'll give you the one point five trillion, Like that'll 0:05:31.400 --> 0:05:34.320 all that, But we can't continue to grow the deficit. 0:05:34.400 --> 0:05:36.520 We have to start trying to like rain this in 0:05:36.560 --> 0:05:39.720 a little bit here, and Biden says no deal. So 0:05:40.040 --> 0:05:42.160 you know what they're telling you, you know the Bide 0:05:42.160 --> 0:05:45.359 administration is telling you, is that they. 0:05:45.240 --> 0:05:46.479 Want the world to end. 0:05:46.839 --> 0:05:50.040 You know, eight million Americans are going to lose their job. 0:05:50.560 --> 0:05:53.000 You know, your Social Security, your Medicare isn't going to 0:05:53.080 --> 0:05:53.680 get paid. 0:05:54.120 --> 0:05:55.560 You know, they're telling you all that stuff. But that's 0:05:55.600 --> 0:05:56.760 that's that's not the truth. 0:05:57.279 --> 0:06:00.960 They're offering to pay one point five trillion. Are increase 0:06:01.000 --> 0:06:03.320 it by one point five trillion now, but you're gonna 0:06:03.360 --> 0:06:07.080 have to start cutting as things move forward. 0:06:07.240 --> 0:06:07.440 Now. 0:06:07.480 --> 0:06:09.240 The by administration, so like I said, says we're gonna 0:06:09.279 --> 0:06:11.520 cut all this, it's gonna be tragic. Well, that's not 0:06:11.560 --> 0:06:16.320 what they're saying. They're asking for minuscule cuts or really 0:06:16.680 --> 0:06:20.599 keeping spending on where we were back in twenty twenty two. 0:06:20.720 --> 0:06:21.920 Now in twenty twenty two. 0:06:22.120 --> 0:06:23.279 Was a record year. 0:06:23.680 --> 0:06:26.120 We increased the money supply in the United States by 0:06:26.320 --> 0:06:30.440 forty percent from twenty twenty twenty twenty two forty percent. 0:06:30.680 --> 0:06:33.200 That was a record year for spending. And they're just saying, hey, 0:06:33.200 --> 0:06:37.400 we should just hold spending to there. And if I 0:06:37.440 --> 0:06:40.200 can recall, twenty twenty two wasn't that far back, and 0:06:40.440 --> 0:06:43.600 you can recall as well as we can both recall 0:06:43.720 --> 0:06:47.559 a year ago the world didn't end, bills got paid, 0:06:48.440 --> 0:06:51.600 eight million Americans were not laid off, Medicare and Social 0:06:51.600 --> 0:06:55.080 Security were still paid. So going back to that level 0:06:55.120 --> 0:06:56.960 doesn't sound so catastrophic. 0:06:58.760 --> 0:06:59.920 Of course, that's what we're being told. 0:07:00.360 --> 0:07:03.840 However, Janet Yellen, she's going around saying, hey, look guys. 0:07:03.880 --> 0:07:06.920 You know, Janney Ellen's the head of the Treasury, Treasury Secretary, 0:07:07.080 --> 0:07:10.600 and she's saying, hey, look, we're we're trying to get 0:07:10.600 --> 0:07:11.960 this dead deal done. We're going to get it done. 0:07:12.720 --> 0:07:15.440 It's not going to be bad. But what's important to 0:07:15.520 --> 0:07:19.240 understand is that regardless whether a deal gets done or not, 0:07:19.600 --> 0:07:22.280 it could still be really bad. In twenty eleven, we 0:07:22.320 --> 0:07:23.960 got really close to that, a deal was struck at 0:07:24.000 --> 0:07:26.680 the last minute, but yet the stock market. The SIP 0:07:26.760 --> 0:07:30.480 five hunderd dropped seventeen percent, seventeen percent, It's big dropped, 0:07:30.800 --> 0:07:33.320 and a lot of other markets dropped even more. And 0:07:33.400 --> 0:07:36.280 so the Democrats don't want that to happen. Now, the 0:07:36.280 --> 0:07:39.000 Democrats are basically they rolled out a letter demanding that 0:07:39.040 --> 0:07:43.920 Biden use a fourteenth Amendment to bypass all this and 0:07:43.960 --> 0:07:46.640 just raise the dead ceiling on their own, basically bypassed 0:07:46.680 --> 0:07:48.800 the entire government. The whole point of the government in 0:07:48.800 --> 0:07:52.200 the United States is that we have divided powers, so 0:07:52.280 --> 0:07:55.960 people can't use move move unilaterally. We don't have a 0:07:56.040 --> 0:07:59.600 king or a dictator. But they want to bypass that, 0:07:59.640 --> 0:08:03.600 of course. Ernie Sanders, Elizabeth Warren, John Fetterman, Richard Blumenthal, 0:08:04.120 --> 0:08:07.400 Tina Smith At Marky, Jeff Merkley, Sheldon Whitehouse, Peter Welch, 0:08:08.040 --> 0:08:11.680 they all want them to do this, just unilaterally decide. 0:08:13.040 --> 0:08:15.040 And Biden says he thinks he has the authority to 0:08:15.040 --> 0:08:15.320 do it. 0:08:16.840 --> 0:08:17.560 He says he can do it. 0:08:17.600 --> 0:08:20.720 Now it's going to be a challenge because they're not 0:08:20.880 --> 0:08:25.720 supposed to do it. So it's going to be a showdown. 0:08:25.760 --> 0:08:30.080 It's going to be a constitutional showdown if this happens, 0:08:30.120 --> 0:08:34.319 and either way. Regardless of what happens, this weakens the 0:08:35.040 --> 0:08:38.440 view of the government, It weakens the confidence that people 0:08:38.520 --> 0:08:42.079 have in the government. It looks horrible on the global stage. 0:08:44.400 --> 0:08:48.440 And regardless of what happens, there is massive amounts of 0:08:48.559 --> 0:08:52.680 money printing in front of us. All right, there's no 0:08:52.800 --> 0:08:54.840 way to pay the bills without increasing the limits. So 0:08:54.880 --> 0:08:58.880 Biden wants an unlimited checkbook. The Republicans are like, not 0:08:59.000 --> 0:09:02.360 only one point five trillion, We lose sight of these 0:09:02.440 --> 0:09:05.720 numbers go so big. So either way, there's massive money 0:09:05.720 --> 0:09:08.839 printing the head The only fight right now is over 0:09:09.040 --> 0:09:09.679 how much. 0:09:09.760 --> 0:09:09.960 Now. 0:09:10.360 --> 0:09:13.079 If you're just tuning in, you're listening to the Markmaas Show, 0:09:13.880 --> 0:09:17.160 I'm talking about this decentralized revolution. I'm talking about some 0:09:17.200 --> 0:09:19.160 of the latest breaking news headlines from this week. I'll 0:09:19.200 --> 0:09:20.960 be back with more in a minute. Don't go away, 0:09:21.000 --> 0:09:21.600 I'll be her back. 0:09:21.840 --> 0:09:22.520 All right, welcome back. 0:09:22.559 --> 0:09:24.120 If you're just tuning and you're listening to the Mark 0:09:24.200 --> 0:09:28.040 mass Show, of course, always talking about the decentralized revolution, 0:09:28.120 --> 0:09:30.679 the way the world is changing, and we're looking at 0:09:30.720 --> 0:09:33.000 it through the lens of politics, finance, technology, and we're 0:09:33.000 --> 0:09:36.600 looking at some of the latest breaking news headlines. This week, 0:09:36.679 --> 0:09:38.840 so you can see exactly how this is playing out. 0:09:38.840 --> 0:09:41.320 And of course it's always technology that changes the world. 0:09:41.320 --> 0:09:43.960 We talked about the finance side just before the break. 0:09:44.000 --> 0:09:45.920 Hopefully you caught that. If not, no worries, I got 0:09:45.960 --> 0:09:46.200 you back. 0:09:46.240 --> 0:09:46.880 I got you back. 0:09:47.160 --> 0:09:49.240 You can catch it on the podcast. Just search the 0:09:49.280 --> 0:09:52.200 Mark Mass Show on your favorite podcast player, or you 0:09:52.200 --> 0:09:56.360 can jump over onto YouTube go to Market Disruptors, Market Disruptors, 0:09:56.400 --> 0:09:58.040 and you can watch me and listen to me at 0:09:58.080 --> 0:09:59.199 the same time over there. 0:09:59.440 --> 0:10:00.000 So if you miss it. 0:10:00.000 --> 0:10:01.920 Any of this, or you missed me one week, don't worry, 0:10:02.040 --> 0:10:04.079 go over there on the podcast or the YouTube channel 0:10:04.080 --> 0:10:04.560 and catch me. 0:10:04.880 --> 0:10:05.120 Now. 0:10:06.320 --> 0:10:08.920 We just talked about the finance side, the debt ceiling problem, 0:10:08.920 --> 0:10:11.959 and now on the technology side is what changes the 0:10:11.960 --> 0:10:13.880 world the most, and that of course is bitcoin, this 0:10:13.920 --> 0:10:14.880 technological revolution. 0:10:15.400 --> 0:10:16.720 And I know a lot of you might. 0:10:16.559 --> 0:10:20.960 Be skeptical about the volatility of the US dollar valuation. 0:10:21.600 --> 0:10:24.000 It used to be fifty thousand or sixty thousand, and 0:10:24.040 --> 0:10:26.280 now thirty thousand, right, and so you kind of get 0:10:26.320 --> 0:10:29.280 some of that. But as I always say, the price 0:10:29.360 --> 0:10:33.120 is a distraction on brand new technologies. The price is 0:10:33.160 --> 0:10:35.720 a distraction, not always, but on brand new technologies. And 0:10:35.720 --> 0:10:37.480 what we really want to look at is two things, 0:10:37.760 --> 0:10:40.640 the growth of the network, and we also want to 0:10:40.640 --> 0:10:45.559 look at the technology development on the network. Now, technology 0:10:45.720 --> 0:10:48.560 scales in layers, just like the monetary system does. So 0:10:48.640 --> 0:10:51.839 gold was money and it was a base settlement layer. 0:10:51.880 --> 0:10:53.080 If I had the gold, I had the gold. If 0:10:53.080 --> 0:10:54.720 I gave you the gold, you have the gold. But 0:10:54.800 --> 0:10:56.920 then we moved into the information age, and so then 0:10:57.000 --> 0:10:59.160 gold added a layer too. The gold goes in the bank. 0:10:59.160 --> 0:11:00.920 They gave me a paper gold certificate. That's a gold 0:11:00.920 --> 0:11:03.319 claimant I owe you. Now we can move the paper 0:11:03.400 --> 0:11:06.320 much faster, but it's not as secure. Then we have 0:11:06.400 --> 0:11:08.960 checks that's layer three. Then we have a credit cards 0:11:08.960 --> 0:11:11.640 that's layer four. Now we have Venmo and PayPal that's 0:11:11.720 --> 0:11:13.760 layer five. And so we have all these different layers, 0:11:13.960 --> 0:11:16.240 and each of those layers offer us different trade offs. 0:11:16.280 --> 0:11:18.839 And Bitcoin, a lot of people say, well, bitcoin's old. 0:11:19.360 --> 0:11:23.679 Come on, Mark, Bitcoin's the stupidest, oldest, dumbest, slowest blockchain 0:11:23.720 --> 0:11:28.439 out there. We want something faster. Well, that's true kind 0:11:28.480 --> 0:11:30.959 of except for technology scales and layers. That's the Internet 0:11:31.000 --> 0:11:33.679 scales as well. If we want we had the internet, 0:11:34.240 --> 0:11:37.040 we want email great, We'll put another layer on SMTP. 0:11:37.240 --> 0:11:40.160 Oh we want security great through another layer on ATTPS. 0:11:40.840 --> 0:11:43.880 And that's how technology works. So if you make that argument, 0:11:43.920 --> 0:11:45.520 if you want to argue with me on that, that 0:11:45.679 --> 0:11:48.280 just kind of shows you don't understand technology. 0:11:48.320 --> 0:11:49.320 I hate to tell you that. 0:11:50.120 --> 0:11:52.360 We are scaling bitcoin layers and now we have these 0:11:52.400 --> 0:11:54.600 Layer two and we have Layer three applications on top 0:11:54.600 --> 0:11:56.880 of bitcoin. And so now with Layer two applications, you 0:11:56.880 --> 0:12:00.760 can already send bitcoin faster and cheaper and more private 0:12:01.080 --> 0:12:04.640 than any other cryptocurrency out there. So every other blockchain 0:12:04.640 --> 0:12:07.160 cryptocurrency says they're faster, cheaper and more private, Well they're 0:12:07.160 --> 0:12:11.680 all obsolete now. Now we're running NFTs on blockchain. So 0:12:11.720 --> 0:12:13.760 all these other blockchains that say, well, but we can 0:12:13.800 --> 0:12:17.440 do smart contracts and NFTs, well we're doing that on 0:12:17.440 --> 0:12:19.920 a Big One blockchain now, so those are all obsolete. 0:12:20.240 --> 0:12:23.160 And talking about new development, we saw announced at the 0:12:23.200 --> 0:12:27.719 Big One conference last week a new layer two protocol 0:12:27.880 --> 0:12:28.600 called ARC. 0:12:29.240 --> 0:12:30.559 And what's cool about ARC. 0:12:30.640 --> 0:12:34.360 Is it's giving you layer two scaleability, allowing you to 0:12:34.400 --> 0:12:38.600 be faster and cheaper and more private but easier. All right, 0:12:38.640 --> 0:12:41.160 So some people might say lightning, which is kind of 0:12:41.160 --> 0:12:43.800 the main layer two channel. Right now, people might say 0:12:43.800 --> 0:12:46.600 that lightning is difficult to use, it's hard to open 0:12:46.720 --> 0:12:48.600 up channels, things like that, and of course things get 0:12:48.640 --> 0:12:51.560 easier over time, so the problem that we have with 0:12:51.559 --> 0:12:53.200 it today won't always be the problem. 0:12:53.240 --> 0:12:54.240 That's what solutions are for. 0:12:55.280 --> 0:12:57.960 But what we're seeing is that now we have another one, 0:12:58.120 --> 0:13:01.360 a competing one, which is good more development, and this 0:13:01.480 --> 0:13:02.720 makes it way easier. 0:13:03.760 --> 0:13:04.440 That's really cool. 0:13:04.559 --> 0:13:06.200 And speaking of ARC, that's the name of this new 0:13:06.280 --> 0:13:09.840 layer two protocol. Speaking of ARC, we have Kathy Wood 0:13:10.040 --> 0:13:15.120 from ARC. She runs a large technology ETF called ARC, 0:13:15.280 --> 0:13:17.920 and she's talking about this week. She was talking about 0:13:17.920 --> 0:13:23.520 how the US, unfortunately seems to be losing this whole movement. 0:13:24.360 --> 0:13:29.160 She's the investment founder of investment manager ARC Invest, and 0:13:29.200 --> 0:13:31.960 she's talking about how it's losing the movement because of 0:13:32.040 --> 0:13:38.360 the regulatory system that it's imposing and how they're basically 0:13:38.960 --> 0:13:40.360 forcing this off the coast. 0:13:40.360 --> 0:13:42.360 She said, quote, it'd be nice if the US. 0:13:42.240 --> 0:13:45.880 We're leading this movement, but we're losing it, and we're 0:13:45.920 --> 0:13:52.520 losing it because of our regulatory system end quote. The regulators, 0:13:52.720 --> 0:13:56.200 the government, they don't like innovation, they don't like things moving. 0:13:56.640 --> 0:13:59.400 Christine Legard, who is the head of the IMF now 0:13:59.440 --> 0:14:01.680 she's head of the ECB European Central Banks. She said 0:14:01.720 --> 0:14:07.760 that innovation is a threat to our financial stability, and 0:14:07.960 --> 0:14:12.400 that's actually true. She's actually right. But that's a good thing. 0:14:13.600 --> 0:14:17.280 So yes, it's disrupting the old system, So yes, it 0:14:17.360 --> 0:14:20.560 makes the old system less stable, but in favor of 0:14:20.600 --> 0:14:25.000 a new, better system. That's called creative destruction. A new 0:14:25.040 --> 0:14:28.640 technology comes along that's so much better that it destroys 0:14:28.720 --> 0:14:32.920 the old way. Digital camera or digital photos on cameras 0:14:33.280 --> 0:14:36.200 were so much better that one hundred year old company 0:14:36.240 --> 0:14:39.160 like Kodak went out of business. Now Kodak could have 0:14:39.640 --> 0:14:43.160 stopped the entire digital camera movement and we could have 0:14:43.240 --> 0:14:47.720 just stuck having to use expensive and harmful chemicals in 0:14:48.440 --> 0:14:52.680 traditional old school film. Could have still been the biggest 0:14:52.680 --> 0:14:55.680 company today in that space, but we wouldn't have the 0:14:55.680 --> 0:14:57.920 innovation which has changed the world as we know it. 0:14:57.960 --> 0:14:59.480 And we want to have that. We want pictures to 0:14:59.480 --> 0:15:03.120 be easier, aster, cheaper, et cetera. And so that's what 0:15:03.160 --> 0:15:05.000 they want to do. They want to stop that. And 0:15:05.040 --> 0:15:07.160 these regulators are doing this, as Kathy would is saying, 0:15:07.160 --> 0:15:10.440 they're driving it overseas, but overseas are pretty hostile as well. 0:15:10.720 --> 0:15:13.920 We saw the European Union said that their banks could 0:15:14.440 --> 0:15:21.760 potentially stop or take over the cryptocurrency stable coins, and 0:15:21.800 --> 0:15:23.960 so they want to stop that. They want to you know, 0:15:24.000 --> 0:15:26.560 put all types of regulations there. Inside the United States, 0:15:26.640 --> 0:15:32.120 Senator Elizabeth Warren is literally running on a campaign to 0:15:33.560 --> 0:15:37.320 an anti crypto campaign, literally an anti technology campaign. 0:15:37.360 --> 0:15:38.760 It reminds me of the Luddites. 0:15:39.400 --> 0:15:41.640 I've ever heard that word before. The Luedites were the 0:15:41.640 --> 0:15:44.800 ones that were very opposed to the Industrial Revolution. So 0:15:44.960 --> 0:15:47.720 two hundred and fifty years ago, the entire world was 0:15:47.760 --> 0:15:50.320 you know, agriculture, farming and cottage industry, and then we 0:15:50.360 --> 0:15:52.200 had the Industrial Revolution that created machines. 0:15:52.680 --> 0:15:55.840 And the machines could do the work of five thousand men. 0:15:57.240 --> 0:15:58.960 But what about all those five thousand men? 0:15:59.000 --> 0:15:59.760 What are they going to do? 0:16:00.000 --> 0:16:02.200 And so the Luttites didn't want this to happen, and 0:16:02.240 --> 0:16:04.240 they tried to stop it. They tried to block it, 0:16:04.280 --> 0:16:05.960 they tried to prevent it. They went and damage it, 0:16:06.000 --> 0:16:07.960 they destroyed this technology because they. 0:16:07.840 --> 0:16:08.880 Didn't want it to be there. 0:16:09.600 --> 0:16:12.880 What's going to happen to the old system of working 0:16:13.720 --> 0:16:17.400 toiling by hand in the field. What will these five 0:16:17.440 --> 0:16:20.120 thousand men do. Well, it turns out they did, you know, 0:16:20.240 --> 0:16:24.320 science and medicine and technology and other more important things. 0:16:24.880 --> 0:16:29.160 And so these ludites like Senator Elizabeth Warren, they want 0:16:29.200 --> 0:16:33.680 to stop it, literally running an anti crypto campaign. 0:16:33.960 --> 0:16:35.600 It's insane. 0:16:36.440 --> 0:16:41.000 She's saying that this Digital Asset Money Laundering Act that 0:16:41.080 --> 0:16:45.280 she's trying to push forward is basically going to kill 0:16:45.360 --> 0:16:48.040 it as we know it, because again, it's a threat 0:16:48.080 --> 0:16:53.240 to their system. Now, the insanity that we have groundbreaking 0:16:53.440 --> 0:17:00.240 revolutionary technology like bitcoin, blockchain, cryptocurrency like AI that's literally 0:17:00.280 --> 0:17:02.560 going to change the world for the future for my kids, 0:17:02.600 --> 0:17:05.520 your kids, grandkids, et cetera. And we have eighty year 0:17:05.560 --> 0:17:09.160 olds in office making decisions now. The average age for 0:17:09.040 --> 0:17:13.600 a fortune five hundred CEO is fifty five. I don't 0:17:13.600 --> 0:17:16.640 think there's really any CEOs in fortune five hundred after 0:17:16.760 --> 0:17:17.760 like sixty five. 0:17:18.160 --> 0:17:19.760 They can't. It's not their fall. 0:17:19.800 --> 0:17:21.479 I'm sorry if you follow this camp, but you're just 0:17:21.480 --> 0:17:23.640 not up to the same technology standards as. 0:17:23.520 --> 0:17:24.080 The kids are. 0:17:24.359 --> 0:17:27.359 And to have eighty year olds passing bills like the 0:17:27.440 --> 0:17:31.760 Ledites trying to stop progress is insane. If you're just 0:17:31.760 --> 0:17:33.560 tuning in you're listening to the Mark mah Show talking 0:17:33.600 --> 0:17:36.600 about the decentralized Revolution, running through some of the biggest 0:17:36.760 --> 0:17:38.800 breaking news headlines this week as we look at it 0:17:38.800 --> 0:17:43.040 through the lens of politics, finance, and technology. Now coming up, 0:17:43.080 --> 0:17:45.560 I want to talk more about what's going on in 0:17:45.600 --> 0:17:49.720 the technology space, specifically getting more into AI, what politics 0:17:49.720 --> 0:17:52.200 are saying about AI, et cetera. And then I want 0:17:52.240 --> 0:17:54.520 to get into what the government's trying to do to 0:17:55.320 --> 0:17:58.800 again entrench their position and prevent themselves from being overturned. 0:17:58.960 --> 0:18:00.720 We'll talk about the deep state. I'm going to talk 0:18:00.720 --> 0:18:02.080 about that when I come back in a minute. Don't 0:18:02.080 --> 0:18:04.879 go away on your back, all right, Welcome back. If 0:18:04.880 --> 0:18:06.920 you're just tuning and you're listening to the Mark mass Show. 0:18:06.960 --> 0:18:10.119 Of course we're talking about the decentralized revolution each and 0:18:10.160 --> 0:18:13.880 every week, running through the latest breaking news headlines this week, 0:18:13.920 --> 0:18:17.560 and it has this makes my job a little bit 0:18:17.600 --> 0:18:19.320 easier because there's so much stuff to talk about each 0:18:19.320 --> 0:18:20.800 and every week. It's a little bit harder trying to 0:18:20.800 --> 0:18:23.119 figure out what to talk about because there's so many things, 0:18:23.160 --> 0:18:25.040 and you know, were before the break, we were just 0:18:25.040 --> 0:18:29.480 talking about technology and how we have eighty year olds 0:18:29.480 --> 0:18:33.960 in government that are making regulations to prevent new technologies. 0:18:35.240 --> 0:18:39.159 And this has always been the case. As I was 0:18:39.160 --> 0:18:41.280 talking about before the break, I was talking about the 0:18:41.359 --> 0:18:45.000 Luddites that literally tried to stop the industrial revolution. How 0:18:45.080 --> 0:18:48.040 dare we have machines that take away the hard work 0:18:48.080 --> 0:18:51.879 from men? Wouldn't you rather be toiling in the field 0:18:52.000 --> 0:18:54.320 every day, twelve fifteen hours a day, just to grow 0:18:54.359 --> 0:18:55.119 your food and survive. 0:18:55.160 --> 0:18:56.720 Wouldn't you rather have that world? 0:18:56.920 --> 0:18:59.320 Because that's the world we could have if we wouldn't 0:18:59.359 --> 0:19:01.640 have had the industry revolution, if those Ludites had only 0:19:01.680 --> 0:19:03.679 gotten their way, we'd still be in those. 0:19:03.560 --> 0:19:05.480 Dark ages, toiling in the fields by hand. 0:19:07.880 --> 0:19:11.240 It was the candle makers that tried to stop electricity 0:19:11.280 --> 0:19:14.320 because they didn't want light bulbs to put the candle 0:19:14.359 --> 0:19:18.399 makers out of work. Electricity is dangerous, it's gonna kill humanity. 0:19:18.640 --> 0:19:21.359 It's bad to be indoors. We need candles. It was 0:19:21.400 --> 0:19:24.320 the buggy makers that tried to stop the cars. Cars 0:19:24.359 --> 0:19:27.840 are loud, they're polluting, they're dangerous. How dare these cars 0:19:27.880 --> 0:19:29.440 move down these highways going fast? 0:19:29.480 --> 0:19:32.920 They could hurt people. The buggy makers, we. 0:19:32.800 --> 0:19:34.880 Can go, we can go down the line every time 0:19:34.920 --> 0:19:37.840 there's another technological revolution. There's a group of people, the 0:19:37.880 --> 0:19:40.679 incumbents that have the power, that don't want to lose that. 0:19:41.040 --> 0:19:43.439 The buggy makers didn't want to lose their jobs and 0:19:43.480 --> 0:19:45.840 lose the monopoly over that. The candlemakers didn't want to 0:19:45.880 --> 0:19:51.640 lose their jobs. Luckily for us at the time, you know, 0:19:51.840 --> 0:19:54.960 they didn't succeed, and we got the machine so we 0:19:54.960 --> 0:19:57.199